This research focuses on the behavior of cash holdings of business group-affiliated firms in Indonesia from 2004 to 2013. We find that business group-affiliated firms hold more cash than that of stand-alone firms. Size of the business group, cash holdings of other firms in the same business group, age of the business group, and the degree of diversification of the business group have a positive influence on cash holdings of the business group-affiliated firms. However, the correlation of growth opportunities among the same group-affiliated firms has limited effects on the cash holdings of the firm.
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