Efficiency as the Missing Link: Exploring How ESG Practices Shape Cash Holding Decisions
DOI:
https://doi.org/10.26740/jim.v14n2.p399-413Kata Kunci:
cash holdings, ESG performance, firm efficiency, financial flexibility, emerging marketAbstrak
Penelitian ini mengkaji hubungan antara kinerja environmental, social, and governance (ESG) dan cash holdings perusahaan dengan meneliti peran mediasi efisiensi perusahaan pada perusahaan non-keuangan di Indonesia selama periode 2018–2022. Dengan menggunakan 405 observasi firm-year dan analisis regresi panel berbasis mediasi, penelitian ini berupaya menjawab perdebatan mengenai apakah praktik ESG menurunkan atau justru meningkatkan insentif perusahaan untuk menahan kas. Hasil penelitian menunjukkan bahwa meskipun kinerja ESG tidak berpengaruh langsung terhadap cash holdings perusahaan, ESG secara signifikan meningkatkan efisiensi perusahaan, dan peningkatan efisiensi tersebut selanjutnya berpengaruh positif signifikan terhadap cash holdings, yang menunjukkan adanya mediasi penuh. Dengan demikian, praktik ESG secara tidak langsung memengaruhi kebijakan likuiditas perusahaan melalui peningkatan kapabilitas operasional, bukan semata-mata melalui mekanisme tata kelola secara langsung. Lebih lanjut, hubungan positif antara efisiensi perusahaan dan cash holdings menunjukkan bahwa perusahaan yang lebih efisien secara operasional cenderung mempertahankan cadangan kas yang besar sebagai bentuk fleksibilitas keuangan strategis, sehingga cash holdings tidak selalu mencerminkan masalah keagenan atau alokasi sumber daya yang tidak efisien. Dalam konteks pasar berkembang seperti Indonesia, dengan kondisi pendanaan eksternal masih relatif mahal dan volatil, perusahaan yang efisien dapat secara sengaja mengakumulasi kas untuk mendukung investasi keberlanjutan, menjaga ketahanan perusahaan, dan mengurangi potensi kendala pendanaan di masa depan. Penelitian ini berkontribusi pada literatur ESG dan keuangan dengan menyoroti peran efisiensi perusahaan sebagai mekanisme transmisi penting yang menghubungkan praktik ESG dan kebijakan likuiditas perusahaan, serta memberikan bukti bahwa cash holdings di pasar berkembang dapat mencerminkan kesiapan strategis dan kapasitas pendanaan internal, bukan semata-mata oportunisme manajerial.
Referensi
Afsharian, M., Ahn, H., & Harms, S. G. (2021). A review of DEA approaches applying a common set of weights: The perspective of centralized management. European Journal of Operational Research, 294(1), 3–15. https://doi.org/10.1016/j.ejor.2021.01.001
Almeida, H., Campello, M., & Weisbach, M. S. (2004). The cash flow sensitivity of cash. The Journal of Finance, 59(4), 1777–1804. https://doi.org/10.1111/j.1540-6261.2004.00679.x
Arora, P., & Dharwadkar, R. (2011). Corporate governance and corporate social responsibility (CSR): The moderating roles of attainment discrepancy and organization slack. Corporate Governance: An International Review, 19(2), 136–152. https://doi.org/10.1111/j.1467-8683.2010.00843.x
Aroul, R. R., Sabherwal, S., & Villupuram, S. V. (2022). ESG, operational efficiency and operational performance: evidence from real estate investment trusts. Managerial Finance, 48(8), 1206–1220. https://doi.org/10.1108/MF-12-2021-0593
Atif, M., Liu, B., & Huang, A. (2019). Does board gender diversity affect corporate cash holdings? Journal of Business Finance and Accounting, 46(7–8), 1003–1029. https://doi.org/10.1111/jbfa.12397
Atif, M., Liu, B., & Nadarajah, S. (2022). The effect of corporate environmental, social and governance disclosure on cash holdings: Life-cycle perspective. Business Strategy and the Environment, 31(5), 2193–2212. https://doi.org/10.1002/bse.3016
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Bates, T. W., Kahle, K. M., & Stulz, R. M. (2009). Why do U.S. firms hold so much more cash than they used to? Journal of Finance, 64(5), 1985–2021. https://doi.org/10.1111/j.1540-6261.2009.01492.x
Bursa Efek Indonesia, P. (2025, January 22). Enhancing ESG data transparency, IDX launches ESG reporting for listed companies. https://www.Idx.Co.Id/En/News/Press-Release/2307
Cerqueti, R., Ciciretti, R., Dalò, A., & Nicolosi, M. (2021). ESG investing: A chance to reduce systemic risk. Journal of Financial Stability, 54, Article 100887 https://doi.org/10.1016/j.jfs.2021.100887
Chang, K., Cheng, X., Wang, Y., Liu, Q., & Hu, J. (2023). The impacts of ESG performance and digital finance on corporate financing efficiency in China. Applied Economics Letters, 30(4), 516–523. https://doi.org/10.1080/13504851.2021.1996527
Chen, H., Yang, D., Zhang, J. H., & Zhou, H. (2020). Internal controls, risk management, and cash holdings. Journal of Corporate Finance, 64. https://doi.org/10.1016/j.jcorpfin.2020.101695
Chen, S., Song, Y., & Gao, P. (2023). Environmental, social, and governance (ESG) performance and financial outcomes: Analyzing the impact of ESG on financial performance. Journal of Environmental Management, 345, Article 118829. https://doi.org/10.1016/j.jenvman.2023.118829
Chen, W., Cao, Y., Dong, Y., & Ma, D. (2025). Environmental regulations and corporate cash holdings. British Accounting Review, 57(5), Article 101388. https://doi.org/10.1016/j.bar.2024.101388
Chen, Y., Dou, P. Y., Rhee, S. G., Truong, C., & Veeraraghavan, M. (2015). National culture and corporate cash holdings around the world. Journal of Banking & Finance, 50, 1–18. https://doi.org/10.1016/j.jbankfin.2014.09.018
Chen, Z., & Xie, G. (2022). ESG disclosure and financial performance: Moderating role of ESG investors. International Review of Financial Analysis, 83, Article 102291. https://doi.org/10.1016/j.irfa.2022.102291
Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to finance. Strategic Management Journal, 35(1), 1–23. https://doi.org/10.1002/smj.2131
Deloitte. (2024). Confidence levels in cash and liquidity management are down 9.5% since 2020. PR Newswire. https://www.prnewswire.com/news-releases/confidence-levels-in-cash-and-liquidity-management-are-down-9-5-since-2020--302276261.html
Denis, D. J., & Sibilkov, V. (2010). Financial constraints, investment, and the value of cash holdings. Review of Financial Studies, 23(1), 247–269. https://doi.org/10.1093/rfs/hhp031
Freeman, R. E., & McVea, J. (2005). A stakeholder approach to strategic management. In M. A. Hitts, R. Freeman, & J. S. Harrison (Eds.), The Blackwell handbook of strategic management (pp. 183–201). Blackwell.
Freeman, R. E. (1984). Strategic management: a stakeholder approach (E. M. Epstein, Ed.). Pitman Publishing.
Hayes, A. F. (2015). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach.
Ho, L., & Lu, Y. (2025). Does corporate sustainability performance matter for cash holdings? International evidence. International Journal of Managerial Finance, 21(2), 329–365. https://doi.org/10.1108/IJMF-01-2024-0052
Ioannou, I., & Serafeim, G. (2011). The consequences of mandatory corporate sustainability reporting. In A. McWilliams, D. E. Rupp, D. S. Siegel, G. K. Stahl, & D. A. Waldman (Eds.), The Oxford handbook of corporate social responsibility: Psychological and organizational perspectives (pp. 452–489). Oxford University Press. http://www.globalreporting.org/ReportServices/GRIReportsList/
Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. The American Economic Review, 76(2), 323–329. http://www.jstor.org/stable/1818789
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Jiang, P.-C., Feng, G.-F., & Yang, H.-C. (2022). New measurement of sovereign ESG index. Innovation and Green Development, 1(2), Article 100009. https://doi.org/10.1016/j.igd.2022.100009
Li, T.-T., Wang, K., Sueyoshi, T., & Wang, D. D. (2021). ESG: Research progress and future prospects. Sustainability (Switzerland), 13(11663), 1–28. https://doi.org/10.3920/978-90-8686-523-9_020
Li, W., Zhu, J., & Liu, C. (2024). Environmental, social, and governance performance, financing constraints, and corporate investment efficiency: Empirical evidence from China. Heliyon, 10(22), e40401. https://doi.org/10.1016/j.heliyon.2024.e40401
Lins, K. V., Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The value of corporate social responsibility during the financial crisis. Journal of Finance, 72(4), 1785–1824. https://doi.org/10.1111/jofi.12505
Liu, B., Johl, S., & Lasantha, R. (2023). ESG scores and cash holdings: The role of disciplinary trading. Finance Research Letters, 55, Article 103854. https://doi.org/10.1016/j.frl.2023.103854
Liu, L., & Tian, G. G. (2021). Mandatory CSR disclosure, monitoring and investment efficiency: evidence from China. Accounting and Finance, 61(1), 595–644. https://doi.org/10.1111/acfi.12588
Marie, M., Qi, B., Elamer, A. A., Khatatbeh, I. N., & Al-Fakir Al Rabab’a, E. (2025). How does board gender diversity drive the ESG performance-cash holdings relationship? Evidence from China. International Journal of Finance and Economics, 30(3), 2705–2723. https://doi.org/10.1002/ijfe.3037
Martínez-Ferrero, J., & Lozano, M. B. (2021). The nonlinear relation between institutional ownership and environmental, social and governance performance in emerging countries. Sustainability (Switzerland), 13(3), 1–16. https://doi.org/10.3390/su13031586
Meng-tao, C., Da-peng, Y., Wei-qi, Z., & Qi-jun, W. (2023). How does ESG disclosure improve stock liquidity for enterprises—Empirical evidence from China. Environmental Impact Assessment Review, 98, Article 106926. https://doi.org/10.1016/j.eiar.2022.106926
Metwally, A. B. M., Aly, S. A. S., & Ali, M. A. S. (2024). The impact of corporate social responsibility on cash holdings: The moderating role of board gender diversity. International Journal of Financial Studies, 12(4), Article 104. https://doi.org/10.3390/ijfs12040104
Opler, T., Pinkowitz, L., Stulz, R., & Williamson, R. (1999). The determinants and implications of corporate cash holdings. Journal of Financial Economics, 52(1), 3–46. https://doi.org/10.1016/S0304-405X(99)00003-3
Saleh, I., Abu Afifa, M., & Alkhawaja, A. (2025). Environmental, social, and governance (ESG) disclosure, earnings management and cash holdings: Evidence from a European context. Business Ethics, the Environment and Responsibility, 34(2), 295–308. https://doi.org/10.1111/beer.12650
Sìmnett, R., Vanstraelen, A., & Chua, W. F. (2009). Assurance on sustainability reports: An international comparison. Accounting Review, 84(3), 937–967. https://doi.org/10.2308/accr.2009.84.3.937
Sun, L., Bai, C., & Sarkis, J. (2025). Corporate ESG performance and operational efficiency: The moderating effect of supply chain concentration. Transportation Research Part E: Logistics and Transportation Review, 204, Article 104446. https://doi.org/10.1016/j.tre.2025.104446
Sundarasen, S. D., Je-Yen, T., & Rajangam, N. (2016). Board composition and corporate social responsibility in an emerging market. Corporate Governance, 16(1), 35–53. https://doi.org/10.1108/CG-05-2015-0059
Tang, H., Xiong, L., & Peng, R. (2024). The mediating role of investor confidence on ESG performance and firm value: Evidence from Chinese listed firms. Finance Research Letters, 61, Article 104988. https://doi.org/10.1016/j.frl.2024.104988
Treepongkaruna, S., Jiraporn, P., & Au Yong, H. H. (2026). Corporate integrity and corporate cash reserves: Insights from textual analysis. International Review of Economics and Finance, 107, Article 105045. https://doi.org/10.1016/j.iref.2026.105045
Tsang, A., Frost, T., & Cao, H. (2023). Environmental, social, and governance (ESG) disclosure: A literature review. British Accounting Review, 55(1), Article 101149. https://doi.org/10.1016/j.bar.2022.101149
Wang, B., Wei, C., Shi, L., Cheng, X., & Shi, X. (2025). ESG and firm operational efficiency: evidence from Chinese listed companies. Environment, Development and Sustainability, 27(1), 681–714. https://doi.org/10.1007/s10668-024-05865-y
Wang, Z., Zhang, C., Wu, R., & Sha, L. (2024). From ethics to efficiency: Understanding the interconnected dynamics of ESG performance, financial efficiency, and cash holdings in China. Finance Research Letters, 64(April), Article 105419. https://doi.org/10.1016/j.frl.2024.105419
Xie, J., Nozawa, W., Yagi, M., Fujii, H., & Managi, S. (2019). Do environmental, social, and governance activities improve corporate financial performance? Business Strategy and the Environment, 28(2), 286–300. https://doi.org/10.1002/bse.2224
Xu, J., & Wan, L. (2024). Research on the relationship between operational efficiency and ESG performance: A new perspective for continued growth. Industrial Engineering and Innovation Management, 7(1), 176–181. https://doi.org/10.23977/ieim.2024.070123
Yuan, L., Nor, M. N. M., & Kadir, D. A. (2025). Green cash flow: How ESG performance shapes corporate cash holding strategies. Frontiers in Sustainability, 6, Article 1531206. https://doi.org/10.3389/frsus.2025.1531206
Zhang, J., Li, Y., Xu, H., & Ding, Y. (2023). Can ESG ratings mitigate managerial myopia? Evidence from Chinese listed companies. International Review of Financial Analysis, 90, Article 102878. https://doi.org/10.1016/j.irfa.2023.102878
Unduhan
Diterbitkan
Cara Mengutip
Terbitan
Bagian
Lisensi
Artikel ini berlisensi Creative Commons Attribution-NonCommercial 4.0 International License.
Abstract views: 505
,
PDF Downloads: 91
