The religion effect on corporate cash holding in China: Buddhism and Taoism

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dc.citation.issue4
dc.citation.volume28
dc.contributor.authorXiong L
dc.contributor.authorXiao L
dc.contributor.authorBai M
dc.contributor.authorQin Y
dc.contributor.authorYang L
dc.date.accessioned2024-07-18T03:26:14Z
dc.date.available2024-07-18T03:26:14Z
dc.date.issued2023-10
dc.description.abstractBuddhism 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.
dc.description.confidentialfalse
dc.edition.editionOctober 2023
dc.format.pagination4420-4457
dc.identifier.citationXiong L, Xiao L, Bai M, Qin Y, Yang L. (2023). The religion effect on corporate cash holding in China: Buddhism and Taoism. International Journal of Finance and Economics. 28. 4. (pp. 4420-4457).
dc.identifier.doi10.1002/ijfe.2658
dc.identifier.eissn1099-1158
dc.identifier.elements-typejournal-article
dc.identifier.issn1076-9307
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/70233
dc.languageEnglish
dc.publisherJohn Wiley and Sons Ltd.
dc.publisher.urihttps://onlinelibrary.wiley.com/doi/10.1002/ijfe.2658
dc.relation.isPartOfInternational Journal of Finance and Economics
dc.rights(c) 2022 The Author/s
dc.rightsCC BY-NC-ND 4.0
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subjectBuddhism
dc.subjectcash holdings
dc.subjectreligion
dc.subjectTaoism
dc.titleThe religion effect on corporate cash holding in China: Buddhism and Taoism
dc.typeJournal article
pubs.elements-id454008
pubs.organisational-groupOther
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