NDLI: Does Religion Matter to Owner-Manager Agency Costs? Evidence from China

Content Provider	Springer Nature Link
Author	Du, Xingqiang
Copyright Year	2012
Abstract	In China, Buddhism and Taoism are two major religions. Using a sample of 10,363 firm-year observations from the Chinese stock market for the period of 2001–2010, I provide strong and robust evidence that religion (i.e., Buddhism and Taoism on the whole) is significantly negatively associated with owner-manager agency costs. In particular, using firm-level religion data measured by the number of religious sites within a radius of certain distance around a listed firm’s registered address, I find that religion is significantly negatively (positively) associated with expense ratio (asset utilization ratio), the positive (reverse) proxy for owner-manager agency costs. This finding is consistent with the following view: religiosity has remarkable effects on the way how an individual thinks and behaves, and thereof can curb managers from unethical business practices. Moreover, my findings suggest that the negative association between religion and owner-manager agency costs is attenuated for firms with strong external monitoring mechanisms such as higher Marketization and high-quality auditors. Furthermore, after separating Buddhism from Taoism, my finding indicates that above conclusions are only available for Buddhism, suggesting that different religions may have asymmetric influence on owner-manager agency costs. Above results are robust to various measures of religiosity and a variety of robustness checks.
Starting Page	319
Ending Page	347
Page Count	29
File Format	PDF
ISSN	01674544
Journal	Journal of Business Ethics
Volume Number	118
Issue Number	2
e-ISSN	15730697
Language	English
Publisher	Springer Netherlands
Publisher Date	2012-12-07
Publisher Place	Dordrecht
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Religion Buddhism Taoism Owner-manager agency costs Expense ratio Asset utilization ratio External monitoring mechanisms Business ethics China Ethics Economic Growth Management/Business for Professionals Quality of Life Research
Content Type	Text
Resource Type	Article
Subject	Arts and Humanities Business and International Management Law Economics and Econometrics

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

Does Religion Mitigate Tunneling? Evidence from Chinese Buddhism

Does Religion Matter to Owner-Manager Agency Costs? Evidence from China

Religion, the Nature of Ultimate Owner, and Corporate Philanthropic Giving: Evidence from China

Corporate Environmental Responsibility in Polluting Industries: Does Religion Matter?

Does the External Monitoring Effect of Financial Analysts Deter Corporate Fraud in China?

Does Religion Affect the Materialism of Consumers? An Empirical Investigation of Buddhist Ethics and the Resistance of the Self

Does Religion Mitigate Earnings Management? Evidence from China

Does Religion Matter to Equity Pricing?

Does Consumer Unethical Behavior Relate to Birthplace? Evidence from China

Does Religion Matter to Owner-Manager Agency Costs? Evidence from China

Similar Documents

Does Religion Mitigate Tunneling? Evidence from Chinese Buddhism

Does Religion Matter to Owner-Manager Agency Costs? Evidence from China

Religion, the Nature of Ultimate Owner, and Corporate Philanthropic Giving: Evidence from China

Corporate Environmental Responsibility in Polluting Industries: Does Religion Matter?

Does the External Monitoring Effect of Financial Analysts Deter Corporate Fraud in China?

Does Religion Affect the Materialism of Consumers? An Empirical Investigation of Buddhist Ethics and the Resistance of the Self

Does Religion Mitigate Earnings Management? Evidence from China

Does Religion Matter to Equity Pricing?

Does Consumer Unethical Behavior Relate to Birthplace? Evidence from China

Does Religion Matter to Owner-Manager Agency Costs? Evidence from China