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Corporate donations and religiosity: Cross-country evidence

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  • Chourou, Lamia

Abstract

Corporate philanthropy varies substantially across countries. This study explores whether the degree of religiosity prevailing in the country where a firm is located helps explain such variation. Using a large sample of firms from 41 countries, I find that firms located in more religious countries donate more than those located in less religious countries. Moreover, I show that the religiosity-donation association is mainly driven by managers catering to stakeholders’ preferences rather than managers’ own preferences. Finally, I find that firms set their donations at an optimal level. My results are robust to a battery of sensitivity analyses and are confirmed by a quasi-natural experiment.

Suggested Citation

  • Chourou, Lamia, 2023. "Corporate donations and religiosity: Cross-country evidence," Journal of Behavioral and Experimental Finance, Elsevier, vol. 39(C).
    • Handle: RePEc:eee:beexfi:v:39:y:2023:i:c:s2214635023000254
    DOI: 10.1016/j.jbef.2023.100811
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    More about this item

    Keywords

    Corporate philanthropy; Religiosity; Firm performance; Firm value;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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