Document Type

Journal Article

Department/Unit

Department of Finance and Decision Sciences

Title

Religiosity and cross‐country differences in trade credit use

Language

English

Abstract

Using the firm-level data over 1989-2012 from 53 countries, we find religiosity in a country is positively associated with trade credit use by local firms. Specifically, after controlling for firm- and country-level factors as well as industry and year effects, we show that trade credit use is higher in more religious countries. Moreover, both creditor rights and social trust in a country enhance the positive association between religiosity and trade credit use, while the quality of national-level disclosure mitigates the aforementioned positive association. These results are robust to alternative measures of religiosity, alternative sampling requirements, and potential endogeneity concerns.

Keywords

Religiosity, Trade Credit Use, Cross-Country Differences, Creditor Rights, Social Trust

Publication Date

2018

Source Publication Title

Accounting and Finance

Publisher

Wiley

DOI

10.1111/acfi.12389

Link to Publisher's Edition

https://doi.org/10.1111/acfi.12389

ISSN (print)

08105391

ISSN (electronic)

1467629X

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