IDEAS home Printed from https://ideas.repec.org/a/ids/injbaf/v14y2024i2p247-278.html
   My bibliography  Save this article

Do governance settings moderate the effect of country risk on firms' cash holdings? Evidence from China

Author

Listed:
  • Seyed Alireza Athari

Abstract

This study examines the impact of governance settings, country risk, and their interactions on Chinese firms' cash holdings. The results reveal that companies stockpile less cash after the enhancement of governance quality by firms, provinces, and the country. Likewise, the results reveal that companies stockpile more cash by decreasing a country's vulnerability to financial, economic, and political risks. The findings also reveal that improvement in governance quality at firms, provinces, and country levels leads to Chinese firms becoming less responsive to country-specific risks in setting their cash holdings policies. Besides, the findings underscore that the impact of country risk is more prominent in companies with small sizes, low debt, and high profitability characteristics.

Suggested Citation

  • Seyed Alireza Athari, 2024. "Do governance settings moderate the effect of country risk on firms' cash holdings? Evidence from China," International Journal of Banking, Accounting and Finance, Inderscience Enterprises Ltd, vol. 14(2), pages 247-278.
    • Handle: RePEc:ids:injbaf:v:14:y:2024:i:2:p:247-278
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=141393
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:injbaf:v:14:y:2024:i:2:p:247-278. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=277 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.