Natalia, Irene and Isnalita, Isnalita and Naimah, Zahroh (2025) Business Strategy and Cash Holdings: The Role of Life-Cycle. In: SIBR 2025 Conference on Interdisciplinary Business & Economics Research, 03/07/2025 - 05/07/2025, Second Floor, Ark Hotel Shinsaibashi, Osaka (Offline) (Online). (In Press)
![[thumbnail of Artikel_SIBR2025_Irene Natalia.pdf]](/style/images/fileicons/application_pdf.png) |
PDF
Artikel_SIBR2025_Irene Natalia.pdf - Submitted Version Restricted to Repository staff only Download (198kB) | Request a copy |
Abstract
The study aims to explore the effect of business strategy and life cycle on non-financial Indonesian firms' cash holdings from 2017 to 2022. Miles and Snow's theoretical background was used to distinguish the contrasting business strategies (prospectors and defenders). Dickinson's life cycle is used to differentiate each life cycle phase. The authors have used multiple regression analysis to explore the association between business strategy and cash holdings. The results show that business strategy is positively related to cash holdings. Prospectors are more likely to hold higher cash levels than defenders. All life cycle phases affect cash holdings, with the growth phase being the strongest. The results have valuable implications for researchers by introducing the relationship between corporate strategy and a firm's CH. This study is limited to one country; empirical evidence based on international samples would add value to the current literature. The findings could be helpful to financial managers and investment strategists who seek to maximize firm value by adopting an effective liquidity policy. This study supports the idea that strategic choice and cash management are important for firms.
| Item Type: | Conference or Workshop Item (Paper) |
|---|---|
| Uncontrolled Keywords: | Cash holdings, Business strategy, Prospectors, Life cycle |
| Subjects: | H Social Sciences > HG Finance |
| Divisions: | Faculty of Business and Economic > Department of Accounting |
| Depositing User: | IRENE NATALIA |
| Date Deposited: | 19 Jan 2026 04:39 |
| Last Modified: | 19 Jan 2026 04:40 |
| URI: | http://repository.ubaya.ac.id/id/eprint/50136 |
Actions (login required)
 |
View Item |
