The impact of leverage on corporate cash holding: evidence from ASEAN-5 Countries

This research investigates the behavior of cash holdings within asean-5 countries which are indonesia, malaysia,philippnes, singapore and thailand between period 1990 until 2014. Moreover, this research focuses on the ralation between leverage and corporate cash holdings. Furthermore, this study also focus on each country analysis,consistency of leverage in influencing cash holdings during the normal period, and the effect of crisis. Using 1932 of non-financial firms that listed in ASEAN-5 as the sample, this research untilizes the fixed effect and cross-sectionalpanel data method. Following T-statistical approach to analyze whether the variables are significant, the result find that the level of firms leverage has negative influence to corporate cash holdings,and leverage is also the most dominant factor in determining cash holdings. The biggest effect of leverage to cash holdings found in singapore. Moreover,crisis turn out to be not significant in affecting or changing the impact of leverage on cash holdings