Does religious culture matter for corporate risk-taking? Evidence from China

Yaoqin Li and Xixiong Xu

Asia-Pacific Journal of Accounting & Economics, 2020, vol. 27, issue 5, 511-530

Abstract: This study investigates the impact of religious culture on corporate risk-taking. Motivated by several considerations including risk aversion trait, we predict a negative relation between religion and corporate risk-taking and support it with Chinese data. We also find that this negative relation is strengthened by female executives while weakened by higher managerial incentives. Further analysis shows that R&D expenditures and cash flow volatility are underlying channels for religion to influence corporate risk-taking. In addition, we find that religious culture improves firms’ investment quality. These findings add to literature by uncovering that risk aversion trait of religion is an important determinant of corporate risk-taking in China.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1080/16081625.2019.1566869 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:raaexx:v:27:y:2020:i:5:p:511-530

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/raae20

DOI: 10.1080/16081625.2019.1566869

Access Statistics for this article

Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

More articles in Asia-Pacific Journal of Accounting & Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().