COVID-19 and Corporate Cash Holdings in Indonesia


  • Bambang Sutrisno Universitas Muhammadiyah Jakarta



COVID-19, cash holdings, precautionary motive


The COVID-19 outbreak highly affected the continuity of public firms. Cash holding decisions are one of the captivating issues in the corporate finance area during the COVID-19 pandemic. This study examines the difference in cash holding levels before and after the COVID-19 pandemic. Public firms included in the LQ45 index are examined. By employing a paired-samples t-test, the results show a significant difference in cash holding level before and after the COVID-19 pandemic exists. This result supports the precautionary motive for saving cash amid the COVID-19. This study implies that the managers should increase the cash holding level during the COVID-19 pandemic.


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2021-08-18 — Updated on 2021-08-18


How to Cite

Sutrisno, B. (2021). COVID-19 and Corporate Cash Holdings in Indonesia. Indonesian Financial Review, 1(1), 11–17.