Uncovering the Hidden Logic Behind Corporate Cash Holding Behavior in Emerging Markets

Authors

  • Erry Setiawan Universitas Mayjen Sungkono Mojokerto, Jawa Timur, Indonesia
  • Kusiyah Kusiyah STIE Kusuma Negara, Jakarta, Indonesia
  • Pilipus Ramandei Universitas Ottow Geissler Papua, Papua, Indonesia
  • Subur Harahap Institut Bisnis Nusantara, Jakarta, Indonesia

DOI:

https://doi.org/10.38035/gijea.v4i4.1035

Keywords:

Corporate Cash Ownership, Corporate Finance, Corporate Governance, Institutional Environment, Emerging Markets

Abstract

Corporate cash ownership is an important issue in corporate finance because it relates to liquidity, investment efficiency, and firm resilience amid economic uncertainty. This study analyzes corporate cash ownership behavior in non-financial companies listed on emerging market capital markets up to 2024. The objective of this study is to examine the determinants of cash ownership and the moderating role of corporate governance quality and investor protection. This study uses panel data regression with a fixed effect approach and dynamic panel models. The results show that firms in emerging markets tend to maintain higher cash levels in response to financing constraints, cash flow volatility, and institutional uncertainty. Growth opportunities and prudential motives have a positive effect on cash ownership, while leverage and access to external financing have a negative effect. Furthermore, corporate governance quality and investor protection significantly moderate the relationship between firm characteristics and cash ownership. Weak institutional environments strengthen prudential motives and agency concerns. This study concludes that corporate cash ownership in emerging markets is shaped not only by financial factors but also by governance and institutional conditions.

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Published

2026-09-17

How to Cite

Setiawan, E., Kusiyah, K., Ramandei, P., & Harahap, S. (2026). Uncovering the Hidden Logic Behind Corporate Cash Holding Behavior in Emerging Markets. Greenation International Journal of Economics and Accounting, 4(4), 981–993. https://doi.org/10.38035/gijea.v4i4.1035

Issue

Vol. 4 No. 4 (2026): Greenation International Journal of Economics and Accounting (September - October 2026)

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Articles

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Copyright (c) 2026 Erry Setiawan, Kusiyah Kusiyah, Pilipus Ramandei, Subur Harahap

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