This research is conducted to find evidences relate to the determinant of
firm’s cash holdings. Every firm will have different policy and decision relate to
the cash level or cash holdings. Many factors can affect the determinant of cash
holdings. This research uses 84 Indonesian listed manufacturing firms from the
year 2006 until 2014. Therefore, there are 756 firm-year observations. The
research tests 6 independent variables with 1 dependent variable. Multiple
regression analysis is used for the hypothesis testing. The results found that there
are significant relationships of net working capital, dividend payment, sales
growth, and cash from operations to firm’s cash holdings. There is no significant
effect of firm size and firm age to firm’s cash holdings. Those results are
following the existing theories which are static trade off theory and pecking order
theory. This research is also consistent with prior researchers’ findings