Religiosity and corruption in bank lending. (1st March 2022)

• Record Type: Journal Article
• Authors: Niu, Geng; Zhou, Yang; Lu, Weijie; Gan, Hongwu
• Is Part Of: Journal of business finance & accounting. Volume 49:Number 9/10(2022)
• Page Start: 1957
• Page End: 1983
• Publication Date: 2022-03-01
• Subjects: bank loan performance -- banking market structure -- lending corruption -- religiosity; Finance -- Periodicals; Accounting -- Periodicals; Business -- Periodicals; 658.15
• DOI: 10.1111/jbfa.12594
• Languages: English
• ISSNs: 0306-686X

Abstract

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.