Corporate social responsibility and cash holding: evidence from trucking firms

ABSTRACT

This study analyses the influence of corporate social responsibility (CSR) on the corporate cash management of trucking firms. The fixed-effects model of the panel data analysis is applied from 2007 to 2017. Capital expenditures, dividend payments, and retained earnings negatively influence cash holdings, whereas cash flow, market-to-book ratio, net working capital, and share repurchase for all CSR categories positively influence cash holdings. However, the changes in market leverage, dividends, book-to-market ratio, and firm size negatively and significantly influence excess stock returns. In summary, social and environmental participations positively influence cash holdings and excess stock returns, respectively.

KEYWORDS:

• Corporate social responsibility
• cash holding
• excess stock returns
• trucking firms

JEL CLASSIFICATION:

• C33
• G30

Disclosure statement

No potential conflict of interest was reported by the authors.