Are religion and culture relevant for corporate risk-taking? International evidence

• Type: Article in International Scientific Journal
• Date: 2019-02

Authors

José María Díez-Esteban (Author) Other; Jorge Farinha (Author) FEP; Conrado Diego García-Gómez (Author) Other

Journal

Title: BRQ Business Research Quarterly

Pages: 36-55

ISSN: 2340-9436

Publisher: Elsevier

Indexing

ISI Web of Science - Citations

Scopus - 0 Citations

Crossref

Scientific classification

CORDIS: Social sciences > Economics > Management studies > Financial management

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-00P-27Q

DOI: 10.1016/j.brq.2018.06.003

Abstract (EN): Using a large sample of firms from 37 countries over the period of 2007¿2015, we empirically analyse the impact of religion and national culture characteristics on the level of corporate risk-taking around the world and the channels through which this can take place. First, we initially observe that different religious backgrounds have different impacts on corporate risk-taking, these being negative for Catholic and Islamic-based countries and positive for firms in Protestant nations. Secondly, we observe that companies in countries with high scores of power distance, masculinity, individualism and long-term orientation tend to increase risk-taking while high levels of uncertainty avoidance moderates corporate risk-taking behavior. We also show results that in companies where institutional investors are the most relevant reference shareholder the influence of religion on corporate risk-taking is not felt, unlike when the main shareholder is an individual or a family. © 2018 ACEDE

Language: English

Type (Professor's evaluation): Scientific