Effects of Product Market Competition on the Relation between Corporate Social Responsibility and Cash Holding

Document Type : Research Paper

Authors

1 MSc of Accounting, Isfahan University, Isfahan, Iran

2 Associate Professor of Accounting, Isfahan University, Isfahan, Iran

3 MSc of Governmental Management, Azad University, Isfahan Branch, Isfahan, Iran.

Abstract

Economic entities generally hold part of their assets in cash. Determining how much of the assets should be held in cash, is one of the important decisions taken by firm management. Despite of extensive investigations on determinants of cash holding level, in accounting literature, effects of product market competition on the relation between social responsibility (CSR) and cash holding in firms is largely unknown. So, this research is aimed to examine these effects. The sample consists of 84 firms listed in Tehran Stock Exchange during the period from 1390 to 1396. This study tests the hypothesis by the panel-data regression model. Results show that the product market competition and social responsibility have a negative and significant effect on the level of cash holding. In addition, findings indicate that the product market competition has a negative and significant effect on the relation between social responsibility and the level of cash holding. 

Keywords

References

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Empirical Research in Accounting
Volume 10, Issue 4 - Serial Number 38
January 2020
Pages 151-176

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History

  • Receive Date: 27 August 2018
  • Revise Date: 22 April 2019
  • Accept Date: 08 May 2019

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