Religious and Cash Holding: Evidence from Indonesia
Abstract
This research examines the effect of religiosity on the cash holding. The method used to test the model is panel data regression by investigating the effect of religiosity on the cash holding of shari'a and non-shari'a companies. The results show that Religiosity (Islamic Dichotomic), showing a positive and significant coefficient on cash holdings. Companies with a high level of religiosity hold significant amounts of cash. The companies hold cash to reduce risk by reducing debt financing.
Keywords: cash holdings, religiosity, risk
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DOI: http://dx.doi.org/10.24042/febi.v4i2.5374
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Ikonomika : Jurnal Ekonomi dan Bisnis Islam is a Journal of Islamic Economics and Business, Published by the Faculty of Islamic Economics and Business at UIN Raden Intan Lampung Indonesia. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.