Cash Holdings in Shariah-Compliant Firms: Empirical Study | ||
| المجلة العلمية للدراسات والبحوث المالية والإدارية | ||
| Article 31, Volume 16, Issue 3, September 2024, Pages 1722-1742 PDF (1.16 M) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/masf.2024.375203 | ||
| Author | ||
| Mai Ali Mohammed Weheba | ||
| PhD Researcher, Accounting Department, Faculty of Commerce, Tanta University | ||
| Abstract | ||
| The purpose of this study is to investigate the determinants of cash holdings of Shariah compliant firms, for non-financial corporations in market of the Gulf Cooperation Council (GCC). The analyzed data include non-financial firms listed in of GCC markets over a period 2015–2022. The Idea Ratings database is used to identify Shariah-compliant firms in the GCC. To examine the determinants of cash holdings, liner regression model is used. The results show that, for Shariah-compliant firms, the relevant determinants of cash holdings are capital expenditure, Size, Dividend payments, Liquidity, leverage, growth opportunities and profitability. The findings suggest that the cash holding decisions of Shariah-compliant firms can be best explained using the pecking order theory. This reveals that Shariah-compliant firms use liquid assets as their first financing option, due to the Shariah regulations | ||
| Keywords | ||
| Cash holdings; financial determinants; Shariah compliance; Islamic finance; Gulf Cooperation Council | ||
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