Do progressive social norms affect economic outcomes? Evidence from corporate takeovers

Yangyang Chen, Edward J. Podolski, S. Ghon Rhee, Madhu Veeraraghavan

Research output: Journal article publicationJournal articleAcademic researchpeer-review

2 Citations (Scopus)

Abstract

By studying the variation in religious adherence across U.S. counties, we find that acquirer announcement returns and total synergy are larger in counties in which progressive religious denominations are popular. In contrast, conservative religious denominations affect neither acquirer announcement returns nor total synergies. Our evidence indicates that religion-induced social norms are an important driver of large corporate transactions, while various religious denominations affect corporate outcomes differently.
Original languageEnglish
Pages (from-to)76-95
Number of pages20
JournalJournal of Empirical Finance
Volume41
DOIs
Publication statusPublished - 1 Mar 2017

Keywords

  • Behavioral finance
  • Corporate takeovers
  • Mainline Protestants
  • Religion

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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