Shariah Compliance and Corporate Cash Holdings

Rania Rahma Febrianti, Wulan Sari () and Bahtiar Usman
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Rania Rahma Febrianti: Universitas Trisakti, Department of Management, Faculty of Economics and Business
Wulan Sari: Universitas Trisakti, Department of Management, Faculty of Economics and Business
Bahtiar Usman: Universitas Trisakti, Department of Management, Faculty of Economics and Business

A chapter in Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022), 2023, pp 710-719 from Springer

Abstract: Abstract This study investigates the influence of Shariah compliance status, firm size, profitability, net working capital, leverage, operating cash flow, and capital expenditure on cash holding. Using a sample of 68 firms in non-cyclical consumer companies listed on the Indonesia Stock from 2017 to 2021. This paper applied panel data regression to estimate the results. The results show that shariah compliance status, profitability, net working capital, leverage, operating cash flow, and capital expenditure have a significant effect on firms’ cash holding decisions, and firm size does not have a significant impact on the level of cash holdings. This study contributes to the literature on the factors determining corporate cash holdings. The findings may be useful for regulators, investors, and financial managers.

Keywords: Capital Expenditure; Cash Holding; Firm Size; Leverage; Net Working Capital; Profitability; Operating Cash Flow; Shariah Compliance (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-350-4_70

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DOI: 10.2991/978-94-6463-350-4_70

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