Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/187657
Authors: 
Li, Wenfei
Cai, Guilong
Year of Publication: 
2016
Citation: 
[Journal:] China Journal of Accounting Research [ISSN:] 1755-3091 [Volume:] 9 [Year:] 2016 [Issue:] 3 [Pages:] 235-250
Abstract: 
This paper investigates whether religious traditions influence firm-specific crash risk in China. Using a sample of A-share listed firms from 2003 to 2013, we provide evidence that the more intense the religious environment, the lower the stock price crash risk, implying that religion plays an important role in Chinese corporate governance. Further, we find that (1) religion affects stock price crash risk by reducing earnings management and the management perk problem; (2) different religions have different effects, and Taoism, in particular, is unrelated to crash risk; and (3) the effects of religion are more pronounced with higher quality corporate governance and a stronger legal environment. Religion constrains the management agency problem, thus reducing stock price crash risk in China. Our paper enriches the literature on stock price crash risk and religion, and on new economic geography.
Subjects: 
Religious environment
Stock price crash risk
Informal institution
Corporate governance
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/4.0/
Document Type: 
Article
Social Media Mentions:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.