The research seeks to analyze and explain the impact of the cash holdings and disclosure of Corporate Social Responsibility (CSR)on the continuity of the firm.
The research depends on a sample of 70 non-financial firms listed in the Egyptian stock Exchange during the period from 2018 to 2021 and analyzes the elements that lead to discrepancies among firms as well as showing the impact of cash holdings and disclosure of CSR on the continuity of the firm.
The findings of the research indicate that the cash holdings has a positive and outstanding impact on continuity of the firm (according to the Altman model and the non-financial measures), and disclosure of CSR has a positive and statistically significant impact on the continuity of the firm (according to the Altman model - according to the non-financial measures)..
Therefore, the research recommends motivating the Egyptian firms to increase the level of disclosure of CSR, and to issue an independent accounting standard that regulates disclosure of CSR. In addition, the firm should try to determine the appropriate level of cash holdings, because it has an impact on the firm’s performance and the continuity of its activity in the future.
The research contributes to the accounting literature by studying the factors that affect the continuity of the firm, which are cash holdings policy and disclosure of CSR. Moreover, this research indicates that non-financial variables, such as corporate governance mechanisms and audit variables of the firm besides financial variables play a vital role in enhancing the prediction of continuity of the firm.
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