Abstract
Background: Religion and finance are the most popular interfaces that have gained attention from scholars in recent years as there is increasing realisation as to how religious beliefs shape economic behaviours and firms’ activities.
Aim of the research: This study focused on the impact of religion on cash-holding practices for firms in the context of the United States. It was hypothesised that there would be a significant influence concerning religious affiliations or beliefs, such as the existence of religious communities, on corporate cash management strategies.
Methodology: A quantitative approach was adopted in this study, following a sample of the U. S. firms. In the research study, variables like the size of the firm, type of industry, and financial performance were used as factors that needed to be controlled.
Download full abstract textIntroduction
Religion and finance are the most popular interfaces that have gained attention from scholars in recent years as there is increasing realisation as to how religious beliefs shape economic behaviours and firms’ activities. Religious values are especially important in value emergence, as well as ethical and normative frameworks in the individual and organisational contexts. Thus, it appears highly relevant and largely uninvestigated how and which religious beliefs influence corporate finance, more specifically cash holdings (Teklay et al., 2024). Religion has always played a significant part in regulating behaviour regarding economic activities in different areas. Religious beliefs and ethics have always played a central role in determining personal financial choices, including the adoption of saving and investment practices and risk-taking propensity (Herzog et al., 2020).
Download full articleReferences
Aldhehayan, A.D.A., 2018. “Islamic religiosity and entrepreneurial risk-taking” the influence of gender, education and income: the case of Saudi Arabia (Doctoral dissertation, University of Southampton).
Aljughaiman, A.A., 2019. Effects of corporate governance mechanisms on financial flexibility, risk-taking behaviour and risk management effectiveness: A comparison study between conventional and Islamic banking systems (Doctoral dissertation, Newcastle University).
Boahen, E.O. and Mamatzakis, E.C., 2020, April. The impact of religion on classification shifting in the presence of corporate governance and BIG 4 audit. In Accounting Forum (Vol. 44, No. 2, pp. 103-131). Routledge.
Download full list of references