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National Governance and Corporate Liquidity in Organization of Islamic Cooperation Countries: Evidence based on a Sharia-compliant Liquidity Measure

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  • Chen, Naiwei
  • Yu, Min-Teh

Abstract

This paper investigates the determination of corporate liquidity in Organization of Islamic Cooperation (OIC) countries with emphasis on whether and how national governance (NG) has bearings on corporate liquidity in such countries. Using the Sharia-compliant liquidity measure to examine non-financial firms' liquidity in 22 OIC countries during the period 2000–2016, results reveal that liquidity determination in OIC countries resembles that in other countries. Additionally, NG positively affects corporate liquidity. Furthermore, the positive and negative effects of growth opportunities and leverage, respectively, on corporate liquidity strengthen with NG. Overall, results suggest that NG improves corporate governance in OIC countries.

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  • Chen, Naiwei & Yu, Min-Teh, 2021. "National Governance and Corporate Liquidity in Organization of Islamic Cooperation Countries: Evidence based on a Sharia-compliant Liquidity Measure," Emerging Markets Review, Elsevier, vol. 47(C).
    • Handle: RePEc:eee:ememar:v:47:y:2021:i:c:s156601412100008x
    DOI: 10.1016/j.ememar.2021.100800
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    Cited by:

    1. Naiwei Chen & Min-Teh Yu, 2023. "Sharia compliance, national governance, and value of cash in Organization of Islamic Cooperation countries," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    2. Kok, Seng Kiong & Shahgholian, Azar, 2023. "The impact of proximity within elite corporate networks on the Shariah governance-firm performance nexus: Evidence from the global Shariah elite," Emerging Markets Review, Elsevier, vol. 54(C).
    3. Farzaneh Nassir Zadeh & Davood Askarany & Solmaz Arefi Asl, 2022. "Accounting Conservatism and Earnings Quality," JRFM, MDPI, vol. 15(9), pages 1-18, September.
    4. repec:zib:zbmbmj:v:1:y:2022:i:2:p:53-58 is not listed on IDEAS
    5. Chen, Naiwei & Yu, Min-Teh, 2024. "Less is more: Evidence from firms with low cash and debt," Research in International Business and Finance, Elsevier, vol. 69(C).

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