Beta
375203

Cash Holdings in Shariah-Compliant Firms: Empirical Study

Article

Last updated: 24 Dec 2024

Subjects

-

Tags

-

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

DOI

10.21608/masf.2024.375203

Keywords

Cash holdings, financial determinants, Shariah compliance, Islamic finance, Gulf Cooperation Council

Authors

First Name

Mai Ali Mohammed

Last Name

Weheba

MiddleName

-

Affiliation

PhD Researcher, Accounting Department, Faculty of Commerce, Tanta University

Email

-

City

-

Orcid

-

Volume

16

Article Issue

3

Related Issue

49895

Issue Date

2024-09-01

Receive Date

2024-09-01

Publish Date

2024-09-01

Page Start

1,722

Page End

1,742

Print ISSN

2682-2113

Online ISSN

2682-2121

Link

https://masf.journals.ekb.eg/article_375203.html

Detail API

https://masf.journals.ekb.eg/service?article_code=375203

Order

31

Type

المقالة الأصلية

Type Code

863

Publication Type

Journal

Publication Title

المجلة العلمية للدراسات والبحوث المالية والإدارية‎

Publication Link

https://masf.journals.ekb.eg/

MainTitle

Cash Holdings in Shariah-Compliant Firms: Empirical Study

Details

Type

Article

Created At

24 Dec 2024