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

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

2 Scopus Citations
View graph of relations

Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)76-95
Journal / PublicationJournal of Empirical Finance
Volume41
Online published11 Jan 2017
Publication statusPublished - Mar 2017
Externally publishedYes

Abstract

This paper investigates how religion-induced attitudes toward change and diversity affect corporate acquisition decisions. 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.

Research Area(s)

  • Religion, Corporate takeovers, Mainline Protestants, Behavioral finance

Citation Format(s)

Do progressive social norms affect economic outcomes? Evidence from corporate takeovers. / Chen, Yangyang; Podolski, Edward J.; Rhee, S. Ghon ; Veeraraghavan, Madhu.

In: Journal of Empirical Finance, Vol. 41, 03.2017, p. 76-95.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review