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Key Determinants of Cash Reserves in Manufacturing Firms During Covid-19 in Indonesia

Year: 2025

Type: article

Abstract: This study investigates the effects of the COVID-19 pandemic on cash reserves in Indonesian manufacturing companies. The research assesses cash levels before, during, and after the pandemic, and identifies key factors influencing cash holdings. Data from publicly listed manufacturing companies in Indonesia were analyzed, focusing on financial metrics such as earnings before interest, taxes, depreciation, and amortization (EBITDA), sales volatility, and net working capital. The findings reveal significant differences in cash, EBITDA, and sales volatility between the pre-crisis (2018-2019) and crisis periods horizons I (2020-2021) and II (2022). The primary determinants of cash holdings were found to be sensitivity of cash flow, capital expenditure, cash flow volatility, net working capital, and debt levels. These factors are crucial in understanding the impact of the pandemic on cash management in Indonesian manufacturing companies.

Source: JMD Jurnal Riset Manajemen & Bisnis Dewantara

DOI: 10.26533/jmd.v7i2.1339

Authors: Santy Dwi Cempaka, Muhammad Saiful Hakim, Naila Qanita Zharifa, Ika Safitri, Muhammad Haris Jauhari, Aang Kunaifi

Institution: Institut Teknologi Sepuluh Nopember

Language: English

Topic: Working Capital and Financial Performance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

OpenAlex ID: W4409101164

FWCI:

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