Shariah Compliance and Corporate Cash Holdings

DOI

10.2991/978-94-6463-350-4_70How to use a DOI?

Keywords

Capital Expenditure; Cash Holding; Firm Size; Leverage; Net Working Capital; Profitability; Operating Cash Flow; Shariah Compliance

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.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Rania Rahma Febrianti
AU  - Wulan Sari
AU  - Bahtiar Usman
PY  - 2024
DA  - 2024/01/10
TI  - Shariah Compliance and Corporate Cash Holdings
BT  - Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)
PB  - Atlantis Press
SP  - 710
EP  - 719
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-350-4_70
DO  - 10.2991/978-94-6463-350-4_70
ID  - Febrianti2024
ER  -