Financial Constraints, Investment, Cash Holdings, Good Corporate Governance, And Firm Growth

Muhammad Nabil Zainul Islam, Najmudin Najmudin, Dian Purnomo Jati, Haiban Syadad

Abstract


This study aims to analyze and determine the effect of financial constraints, investment, and cash holding on firm growth moderated by good corporate governance. The population in this study are firms listed on the acceleration board and development board of the Indonesian stock exchange which were initial public offering in 2017-2021. The sample was determined by purposive sampling method to get 49 high-growth firms. The analysis method used is multiple linear regression and moderated regression analysis. The results show that financial constraints and cash holdings have a negative effect on firm growth, while investment has a positive effect on firm growth. However, good corporate governance (GCG) does not have a significant impact on firm growth. Additionally, GCG can weaken the effect of financial constraints but does not moderate the effect of investment and cash holdings on firm growth.

Keywords: Financial Constraints, Investment, Cash Holding, Good Corporate Governance, Firm Growth, High-Growth Firm.


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