Cash holdings of minority family businesses in Indonesia

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. •Market-dominant minorities (MDM) is economy-dominating ethnic minority businesses.•We investigate the cash holdings of MDM in Indonesia, the Chinese diaspora.•We find MDM-controlled companies hold a higher level of cash than others.•Among MDM companies, those with family management hold relatively less cash.•MDM companies changed cash position after ethnic conflict in 2016 Jakarta protests.