Corporate social responsibility and cash holdings: insights from China’s A-listed corporate sector

Purpose This research examines how corporate social responsibility (CSR) affects cash holding strategies of enterprises. Design/methodology/approach By sampling the Chinese A-Share listed firms from 2010 to 2022, we utilize fixed effects, panel EGLS and system GMM models for regression analysis. Findings The study finds that firms with higher CSR engagement tend to hold less cash, likely due to improved access to external financing and stronger stakeholder relationships, which encourage reinvestment in sustainable initiatives. The results reveal that debt financing, firm size, asset tangibility and firm efficiency influence cash reserves. Practical implications The study offers practical significance by demonstrating how socially responsible practices can enhance financial management and stability in an emerging market context. Originality/value This research provides novel insights into the intersection of CSR and corporate finance, highlighting the strategic importance of integrating social responsibility into financial decision-making.

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