Bringing religion back in: Religious entrepreneurs, entrepreneurial gender, and bank loans in Chinese family firms. Issue 4 (2nd December 2019)

• Record Type: Journal Article
• Authors: Du, Xingqiang; Zeng, Quan
• Is Part Of: Asian review of accounting. Volume 27:Issue 4(2019)
• Page Start: 508
• Page End: 545
• Publication Date: 2019-12-02
• Subjects: Religious belief -- Bank loans -- Chinese family firms -- Entrepreneurial gender -- Religious entrepreneurs; G21 -- G32 -- M41 -- Z12; Accounting -- Asia -- Periodicals; Accounting -- Pacific Area -- Periodicals; Accounting -- Periodicals; 657.095
• DOI: 10.1108/ARA-04-2018-0097
• Languages: English
• ISSNs: 1321-7348

Abstract

Abstract : Purpose: The purpose of this paper is to investigate the influence of religious entrepreneurs on bank loans and further examine the moderating effect of entrepreneurial gender. Design/methodology/approach: In 2010, the Chinese national survey reported the different religious beliefs of private entrepreneurs. Using this set of survey data, the authors obtain a sample of 4, 330 Chinese family firms and employ the Tobit regression approach to examine the relationship between the amount of bank loans and the religious background of entrepreneurs. In addition, the authors use the propensity score matching approach to address the endogeneity issue. Findings: Based on the data from the 2010 national survey, the authors document that the amount of bank loans is significantly higher for Chinese family firms with religious entrepreneurs than for their counterparts. This finding suggests that religious individuals are inclined to be more ethical and honest and Chinese family firms with religious entrepreneurs transfer soft information to banks, and eventually lenders favor religious entrepreneurs with more bank loans. Moreover, the authors reveal that the amount of bank loans is significantly larger for firms with female entrepreneurs than for those without female entrepreneurs. In addition, entrepreneurial gender attenuates the positive relationship between religious entrepreneurs and bank loans. Originality/value: This study is one of few studies to examine the influence of an entrepreneur's religious belief on bank credit decisions and adds to previous studies about religious influence on corporate behavior by revealing a positive association between religious entrepreneurs and bank loans. Moreover, this study validates that female entrepreneurs exert positive effects on the amount of bank loans and attenuate the positive influence of religious entrepreneurs on bank loans.