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

journal contribution
posted on 01.03.2017, 00:00 authored by Y Chen, Edward PodolskiEdward Podolski, S G Rhee, M Veeraraghavan
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.

History

Journal

Journal of empirical finance

Volume

41

Pagination

76 - 95

Publisher

Elsevier

Location

Amsterdam, The Netherlands

ISSN

0927-5398

Language

eng

Publication classification

C Journal article; C1 Refereed article in a scholarly journal

Copyright notice

2017, Elsevier