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Corporate Social Responsibility and Value of Cash Holdings in Taiwan: The Role of Family Firms

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  • Min-Lee Chan
  • Cho-Min Lin
  • Huan-Min You

Abstract

This paper is to shed light on the relationship between corporate social responsibility (CSR) and cash value at family businesses using 3630 firm-year observations representing 395 listed Taiwanese companies. The results indicate that CSR has a significantly positive impact on cash value at family businesses, but no apparent relationship is supported at non-family businesses. Regarding the CSR activities, environmental protection, corporate commitment and corporate governance are consistently and significantly confirm the positive effects on corporate cash value at the family business, but social participation does not confirm this finding. The above results imply that conflict resolution view/or socio-emotional wealth view is evidenced at the relationship between family firm’s CSR and cash value. To the best of our knowledge, our results are firstly documented on the relationship between cash value and CSR of family business and thus make major contributions to related literature of family business.  JEL classification numbers: G32, G34, M14.

Suggested Citation

  • Min-Lee Chan & Cho-Min Lin & Huan-Min You, 2022. "Corporate Social Responsibility and Value of Cash Holdings in Taiwan: The Role of Family Firms," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 12(4), pages 1-3.
    • Handle: RePEc:spt:apfiba:v:12:y:2022:i:4:f:12_4_3
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    References listed on IDEAS

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    1. Xiaohui Chen & Wen Chen & Tao Hu & Bo Yang & Jianguang Zeng, 2023. "Regional carbon efficiency and corporate cash holdings: evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.

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    More about this item

    Keywords

    Family Business; Corporate Social Responsibility; Cash Value.;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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