摘要
This study examines whether and how Sharia compliance and national governance affect the value of corporate cash holding (cash) in Organization of Islamic Cooperation (OIC) countries. Study results indicate that cash can enhance firm value and such cash value is higher for Sharia-compliant firms than for Sharia non-compliant firms. In addition, cash is particularly valuable when national governance is strong. Furthermore, the positive effect of Sharia compliance on cash value is more pronounced when national governance is strong. Results suggest that internal governance (i.e., Sharia compliance) and external governance (i.e., national governance) should be in sync to maximize cash value.