The impact of religiosity on earnings quality: International evidence from the banking sector
Name:
Publisher version
View Source
Access full-text PDFOpen Access
View Source
Check access options
Check access options
Authors
Omoteso, Kamil
Affiliation
University of DerbyIssue Date
2020-10-02
Metadata
Show full item recordAbstract
We examine the impact of religiosity on earnings quality, utilising a global sample of 1,283 listed banks headquartered in 39 countries and covering the period 2002–2018. Using instrumental variables two-stage least squares regressions, we demonstrate that religiosity has a significant positive impact on banks’ earnings quality. We further show that the impact of religiosity becomes more pronounced among banks headquartered in countries where religion is an important element of national identity and in countries with weak legal protection. We show that the effects of religiosity are more intense during the global financial crisis period. Overall, these findings support the notion that high religiosity tends to reduce unethical activities by managers and can function as an alternative control mechanism for minimising agency costs. Our empirical investigation is robust to alternative model sample specification.Citation
Abdelsalam, O., Chantziaras, A., Omoteso, K. and Ibrahim, M., (2020). 'The impact of religiosity on earnings quality: International evidence from the banking sector'. The British Accounting Review, pp. 1-43.Publisher
ElsevierJournal
The British Accounting ReviewDOI
10.1016/j.bar.2020.100957Additional Links
https://www.sciencedirect.com/science/article/pii/S0890838920300779Type
ArticleLanguage
enISSN
0890-8389ae974a485f413a2113503eed53cd6c53
10.1016/j.bar.2020.100957
Scopus Count
Collections
The following license files are associated with this item:
- Creative Commons
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivatives 4.0 International