| dc.description.abstract | This paper mainly discusses the relation among Islamic doctrine, corporate governance, growth opportunity and investment-cash flow sensitivity, and conducts empirical analysis based on the sample of Indonesian companies from 2011 to 2017. Islam is one of the four major religions in the world, and its doctrine has far-reaching effects on managers ’behavior.
This paper discusses the implementation of Islamic doctrine in managers’ behavior and its impact on investment-cash flow sensitivity. This paper deduces five research hypotheses from the purpose and practice of Islamic doctrine. The companies that follow the Islamic doctrines have higher investment-cash flow sensitivity. The companies that follow Islamic doctrine, the larger the size of the board of directors, the higher investment-cash flow sensitivity. The companies that follow Islamic doctrine, the higher the percentage of independent directors, the lower the investment-cash flow sensitivity; the company that follows the Islamic principles, the higher the shareholding of institutional investors, the higher the investment-cash flow sensitivitys and the companies that follow the Islamic principles, the higher the shareholding of internal owners, the higher the investment-cash flow sensitivity.
Finally, we consider the growth opportunity into the model and determine the impact of Islamic doctrine and corporate governance variables on the investment-cash flow sensitivity, the impact of Islamic doctrine and corporate governance on the investment-cash flow sensitivity is the same for high-growth opportunities as original; when the low growth opportunities, Islamic doctrine and corporate governance are sensitive to investment cash flow is no significant effect. The research results of this paper make a significant contribution to the management of Islamic doctrine, that is, the doctrine of practice and the feedback of management behaviors, which have different effects on the investment-cash flow sensitivity. | en_US |