Date of this version
4-2016
Document Type
Article
Keywords
Culture, religion, behavioral finance, risk aversion, capital structure, investment, diversification, compensation
Abstract
We investigate whether manager’s religious affiliations affect corporate decisions. We hand collect data on the religious affiliations of CEOs and find that firms with Catholic CEOs have less leverage, issue debt less often, increase business and geographic diversification, and invest less than firms with Protestant CEOs. We also find that the decisions of Catholic CEOs are associated with lower firm value. These corporate actions are also reflected in the CEOs’ personal decisions, such as owning fewer company stocks and playing less risky sports.
Published in
Financial Management
COinS
Citation/Other Information
1-38