Religious and Cash Holding: Evidence from Indonesia

Ernie Hendrawaty, Edi Pranyoto, Adam Muhammad Abubakar, PhD


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


cash holdings, religiosity, risk

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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 RadenIntan Lampung Indonesia. 


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