HOW DO CORPORATE SUSTAINABILITY AND PANDEMIC AFFECT CASH HOLDINGS IN MUSLIM COUNTRIES?
We investigate how corporate sustainability (Environmental, Social, and Governance-ESG) influences cash holdings of non-financial firms in Muslim countries from 2003 to 2021. Using panel models, we find that firms with lower ESG hold more cash over the entire period, which aligns with the agency an...
Main Authors: | , |
---|---|
Format: | Article |
Language: | English |
Published: |
Bank Indonesia
2022-12-01
|
Series: | Journal of Islamic Monetary Economics and Finance |
Subjects: | |
Online Access: | https://jimf-bi.org/index.php/JIMF/article/view/1649 |
_version_ | 1797870619096776704 |
---|---|
author | Hasan Tekin Huseyin Burgazoglu |
author_facet | Hasan Tekin Huseyin Burgazoglu |
author_sort | Hasan Tekin |
collection | DOAJ |
description | We investigate how corporate sustainability (Environmental, Social, and Governance-ESG) influences cash holdings of non-financial firms in Muslim countries from 2003 to 2021. Using panel models, we find that firms with lower ESG hold more cash over the entire period, which aligns with the agency and precautionary motives of cash holdings. We also note that the negative relation between ESG and cash holding is not affected by the COVID-19 pandemic. Looking at individual countries in the sample, we note a positive relation between ESG and cash balances for Saudi Arabia. Meanwhile, similar to the full sample, their relation is negative for firms from Malaysia and Turkiye. Finally, the ESG and cash policies of firms in different industries tend to vary. Overall, firms in Muslim countries use cash holdings as a substitute for corporate sustainability without any changes in the COVID era. |
first_indexed | 2024-04-10T00:31:20Z |
format | Article |
id | doaj.art-d1d4f1bd240e4a889de58110f181d1ad |
institution | Directory Open Access Journal |
issn | 2460-6146 2460-6618 |
language | English |
last_indexed | 2024-04-10T00:31:20Z |
publishDate | 2022-12-01 |
publisher | Bank Indonesia |
record_format | Article |
series | Journal of Islamic Monetary Economics and Finance |
spelling | doaj.art-d1d4f1bd240e4a889de58110f181d1ad2023-03-15T03:58:47ZengBank IndonesiaJournal of Islamic Monetary Economics and Finance2460-61462460-66182022-12-018461563610.21098/jimf.v8i4.16491649HOW DO CORPORATE SUSTAINABILITY AND PANDEMIC AFFECT CASH HOLDINGS IN MUSLIM COUNTRIES?Hasan Tekin0Huseyin Burgazoglu1Karabuk University, TurkeySakarya University, Sakarya Business School, TurkeyWe investigate how corporate sustainability (Environmental, Social, and Governance-ESG) influences cash holdings of non-financial firms in Muslim countries from 2003 to 2021. Using panel models, we find that firms with lower ESG hold more cash over the entire period, which aligns with the agency and precautionary motives of cash holdings. We also note that the negative relation between ESG and cash holding is not affected by the COVID-19 pandemic. Looking at individual countries in the sample, we note a positive relation between ESG and cash balances for Saudi Arabia. Meanwhile, similar to the full sample, their relation is negative for firms from Malaysia and Turkiye. Finally, the ESG and cash policies of firms in different industries tend to vary. Overall, firms in Muslim countries use cash holdings as a substitute for corporate sustainability without any changes in the COVID era.https://jimf-bi.org/index.php/JIMF/article/view/1649cash management, covid, disclosure, esg, islamic. |
spellingShingle | Hasan Tekin Huseyin Burgazoglu HOW DO CORPORATE SUSTAINABILITY AND PANDEMIC AFFECT CASH HOLDINGS IN MUSLIM COUNTRIES? Journal of Islamic Monetary Economics and Finance cash management, covid, disclosure, esg, islamic. |
title | HOW DO CORPORATE SUSTAINABILITY AND PANDEMIC AFFECT CASH HOLDINGS IN MUSLIM COUNTRIES? |
title_full | HOW DO CORPORATE SUSTAINABILITY AND PANDEMIC AFFECT CASH HOLDINGS IN MUSLIM COUNTRIES? |
title_fullStr | HOW DO CORPORATE SUSTAINABILITY AND PANDEMIC AFFECT CASH HOLDINGS IN MUSLIM COUNTRIES? |
title_full_unstemmed | HOW DO CORPORATE SUSTAINABILITY AND PANDEMIC AFFECT CASH HOLDINGS IN MUSLIM COUNTRIES? |
title_short | HOW DO CORPORATE SUSTAINABILITY AND PANDEMIC AFFECT CASH HOLDINGS IN MUSLIM COUNTRIES? |
title_sort | how do corporate sustainability and pandemic affect cash holdings in muslim countries |
topic | cash management, covid, disclosure, esg, islamic. |
url | https://jimf-bi.org/index.php/JIMF/article/view/1649 |
work_keys_str_mv | AT hasantekin howdocorporatesustainabilityandpandemicaffectcashholdingsinmuslimcountries AT huseyinburgazoglu howdocorporatesustainabilityandpandemicaffectcashholdingsinmuslimcountries |