Journal Articles

Permanent URI for this collectionhttps://mro.massey.ac.nz/handle/10179/7915

Browse

Filters

2023 - 20242

Settings

Has files: YesSubject: search.filters.subject.Buddhism

Search Results

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    The religion effect on corporate cash holding in China: Buddhism and Taoism
    (John Wiley and Sons Ltd., 2023-10) Xiong L; Xiao L; Bai M; Qin Y; Yang L
    Buddhism and Taoism have been deeply rooted in China for generations and both of them have a profound impact on the local culture and social norms. By employing 23,999 firm-year observations between 2008 and 2018, we examine how local religious norms affect corporate cash policies. We provide strong evidence that religiosity significantly reduces the level of corporate cash holdings, by mitigating financial constraints and earnings management of the listed companies. Managers from religious areas make more effective investments and distribute more dividends. Furthermore, our findings document that religion has a more pronounced influence on cash holdings amongst the firms with the smaller size, lower leverage, higher marketization, effective internal control and facing fierce market competition. Overall, Buddhism and Taoism, constituting the main religious norms in China, significantly optimize the firms' cash holdings and firm value.
  • Thumbnail Image
    Item
    In the radiance of enlightenment: The influence of nontheistic religions on corporate default risk
    (Elsevier B V, 2024-06) Feng Y; Hao W; Fang J; Wongchoti U
    We investigate whether religious site density around a firm's headquarters is related to corporate default risk in China. We find that public firms surrounded by a higher number of Buddhist and Taoist temples are associated with lower default risk. In contrast to the widely documented impact of Western religiosity on corporate behavior, our mechanism tests indicate that lower default risk related to religious site density is primarily driven by better corporate governance and not by a surge in corporate conservatism. Finally, we find that this default risk lowering effect is more pronounced when firms also possess greater political resources.