Cash holdings of minority family businesses in Indonesia

Heyvon Herdhayinta; James Lau; Carl Hsin-han Shen

doi:10.1016/j.ememar.2022.100968

Cash holdings of minority family businesses in Indonesia

Heyvon Herdhayinta, James Lau, Carl Hsin-han Shen

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

Abstract

Market-dominant minorities (MDM) is a phenomenon widespread in emerging countries. Drawing on the socioemotional wealth perspective, we investigate the cash holdings of minority family businesses owned by the Chinese diaspora, as MDM in Indonesia. Our findings suggest that they hold a relatively high level of cash. However, there is heterogeneity among these MDM firms, whereby those with family management hold a lower level of cash. Furthermore, by analyzing the effect of the 2016 Jakarta protests, we find that MDM businesses may change their cash policies after an ethnic conflict. This study advances our understanding of MDM family firms.

Original language	English
Article number	100968
Pages (from-to)	1-14
Number of pages	14
Journal	Emerging Markets Review
Volume	55
Early online date	13 Oct 2022
DOIs	https://doi.org/10.1016/j.ememar.2022.100968
Publication status	Published - Jun 2023

Keywords

Cash holdings
Ethnic minority business
Market-dominant minorities
Minority family business
Socioemotional wealth (SEW)

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10.1016/j.ememar.2022.100968

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title = "Cash holdings of minority family businesses in Indonesia",

abstract = "Market-dominant minorities (MDM) is a phenomenon widespread in emerging countries. Drawing on the socioemotional wealth perspective, we investigate the cash holdings of minority family businesses owned by the Chinese diaspora, as MDM in Indonesia. Our findings suggest that they hold a relatively high level of cash. However, there is heterogeneity among these MDM firms, whereby those with family management hold a lower level of cash. Furthermore, by analyzing the effect of the 2016 Jakarta protests, we find that MDM businesses may change their cash policies after an ethnic conflict. This study advances our understanding of MDM family firms.",

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AU - Lau, James

AU - Shen, Carl Hsin-han

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AB - Market-dominant minorities (MDM) is a phenomenon widespread in emerging countries. Drawing on the socioemotional wealth perspective, we investigate the cash holdings of minority family businesses owned by the Chinese diaspora, as MDM in Indonesia. Our findings suggest that they hold a relatively high level of cash. However, there is heterogeneity among these MDM firms, whereby those with family management hold a lower level of cash. Furthermore, by analyzing the effect of the 2016 Jakarta protests, we find that MDM businesses may change their cash policies after an ethnic conflict. This study advances our understanding of MDM family firms.

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KW - Ethnic minority business

KW - Market-dominant minorities

KW - Minority family business

KW - Socioemotional wealth (SEW)

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JO - Emerging Markets Review

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Cash holdings of minority family businesses in Indonesia

Abstract

Keywords

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