Corporate social responsibility and cash holdings: insights from China’s A-listed corporate sector

Mohammad Al-Gharaibeh, Umar Farooq, Mosab I. Tabash, Zilola Shamansurova and Lara Alhaddad

Asian Journal of Accounting Research, 2025, vol. 10, issue 4, 415-429

Abstract: PurposeThis research examines how corporate social responsibility (CSR) affects cash holding strategies of enterprises.Design/methodology/approachBy sampling the Chinese A-Share listed firms from 2010 to 2022, we utilize fixed effects, panel EGLS and system GMM models for regression analysis.FindingsThe study finds that firms with higher CSR engagement tend to hold less cash, likely due to improved access to external financing and stronger stakeholder relationships, which encourage reinvestment in sustainable initiatives. The results reveal that debt financing, firm size, asset tangibility and firm efficiency influence cash reserves.Practical implicationsThe study offers practical significance by demonstrating how socially responsible practices can enhance financial management and stability in an emerging market context.Originality/valueThis research provides novel insights into the intersection of CSR and corporate finance, highlighting the strategic importance of integrating social responsibility into financial decision-making.

Keywords: Corporate social responsibility; Corporate cash holdings; Firm size; Firm efficiency; Sustainability (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ajarpp:ajar-09-2024-0386

DOI: 10.1108/AJAR-09-2024-0386

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