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Religiosity and corruption in bank lending

Author

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  • Geng Niu
  • Yang Zhou
  • Weijie Lu
  • Hongwu Gan

Abstract

This paper explores the effect of country‐level religiosity on corruption in bank lending. By using the World Business Environment Survey, we find that firms in more religious countries perceive a higher level of bank lending corruption. Furthermore, larger (smaller) foreign (government) ownership and more competition in a country's banking system attenuate the adverse effect of religiosity. The effect of religiosity carries over to bank loan performance. Our findings are confirmed by various robustness checks. This study contributes to a more balanced and comprehensive understanding of the role of religion in business ethics.

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  • Geng Niu & Yang Zhou & Weijie Lu & Hongwu Gan, 2022. "Religiosity and corruption in bank lending," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 49(9-10), pages 1957-1983, October.
    • Handle: RePEc:bla:jbfnac:v:49:y:2022:i:9-10:p:1957-1983
    DOI: 10.1111/jbfa.12594
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