Journal article
Earthly Reward to the Religious: Religiosity and the Costs of Public and Private Debt
Journal of financial and quantitative analysis, Vol.53(5), pp.2131-2160
10/01/2018
DOI: 10.1017/S002210901800039X
Abstract
We document that a firm's culture, specifically, its religiosity, affects its cost of debt. Firms in higher-religiosity counties have higher credit ratings and lower debt costs. The impact of religiosity is stronger for firms with greater information asymmetry and during recessions. Further, religiosity has additional explanatory power for the cost of bank loans (but not the cost of public bonds) beyond its impact through ratings. This supports the argument that banks have superior abilities in pricing soft information, such as corporate culture. Finally, the impact of religiosity is stronger when the lender is a small bank.
Details
- Title: Subtitle
- Earthly Reward to the Religious: Religiosity and the Costs of Public and Private Debt
- Creators
- Feng Jiang - University at Buffalo, State University of New YorkKose John - NYU, New York, NY 10003 USAC. Wei Li - Univ Iowa, Iowa City, IA 52242 USAYiming Qian - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Journal of financial and quantitative analysis, Vol.53(5), pp.2131-2160
- Publisher
- Cambridge Univ Press
- DOI
- 10.1017/S002210901800039X
- ISSN
- 0022-1090
- eISSN
- 1756-6916
- Number of pages
- 30
- Language
- English
- Date published
- 10/01/2018
- Academic Unit
- Finance
- Record Identifier
- 9984380447802771
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