Does religion matter to informal finance? Evidence from trade credit in China

@article{Cao2019DoesRM,
  title={Does religion matter to informal finance? Evidence from trade credit in China},
  author={Chunfang Cao and Kam C. Chan and Wenxuan Hou and Fansheng Jia},
  journal={Regional Studies},
  year={2019},
  volume={53},
  pages={1410 - 1420}
}
ABSTRACT Informal finance plays an important role in transitional economies with weak legal institutions, such as China. As a major informal finance instrument, trade credit relies on informal institutions and enforcement. The paper argues that religion enhances the ethical climate in which firms do business, and it predicts that religiosity increases trade credit, in that religion enhances enforcement by increasing non-pecuniary cost and reducing risk-taking. The results based on Chinese non… 
Chinese culture, materialism and corporate supply of trade credit
Purpose The purpose of this paper is to investigate how cultural value in materialism affects corporate supply of trade credits. Design/methodology/approach Using a sample of 14,710 firm-year
Financialization, religion, and social trust in rural China
TLDR
The findings show that while financialization destroys the traditional relatives and friends trust based on lending and borrowing in rural area, religiosity lessens the negative impact of financialization on particular trust.
Stock Market Participation with Formal versus Informal Housing Debt
We study whether mortgage debt obtained from licensed financial institutions and informal home loans obtained from private lending have differing impacts on stock ownership. Using the China Household
Women-led Firms and Credit Access. A Gendered Story?
This work focuses on credit access and demand in Italian firms using the RIL dataset, a sample representative of Italian firms, for the year 2015. We investigate whether the gender of the firm’s
Does informal finance matter for micro and small businesses in Africa?
Globally, micro and small businesses require finance to support their business activities. Most of them have low profits because of the lack of support from the formal financial system. Micro and
Formal versus Informal Mortgage Debt and Stock Market Participation
We study whether formal mortgage loans obtained from licensed financial institutions and informal mortgage obtained from private lending have differing impacts on stock ownership. Using the China
Regional institutions, financial analysts and stock price informativeness
ABSTRACT This paper investigates the impact of legal institutions on the external governance role of equity analysts in enhancing the corporate information environment. By analysing a sample of
The Effect of Local Religiosity on Financing Cross-Regional Entrepreneurial Projects Via Crowdfunding (Local Religiosity and Crowdfinancing)
This paper aims to develop a better understanding of the influence of the social environment in which entrepreneurs reside on the success of the crowdfunding projects they propose. Specifically, this
The Labour Participation Decision of the Rural Left-Behind Elderly from a Cultural Perspective
Alleviating poverty amongst the rural left-behind elderly is not only an important goal for China’s rural revitalization, but also for improving pension security amongst the rural left-behind
...
...

References

SHOWING 1-10 OF 57 REFERENCES
Formal versus Informal Finance: Evidence from China
China is often mentioned as a counterexample to the findings in the finance and growth literature since, despite the weaknesses in its banking system, it is one of the fastest growing economies in
Does Religion Matter to Equity Pricing?
For a sample comprising 36,105 U.S. firm-year observations from 1985 to 2008, we find that firms located in more religious counties enjoy cheaper equity financing costs. This result is robust to a
Does Religion Matter to Owner-Manager Agency Costs? Evidence from China
In China, Buddhism and Taoism are two major religions. Using a sample of 10,363 firm-year observations from the Chinese stock market for the period of 2001–2010, I provide strong and robust evidence
Does Religion Mitigate Tunneling? Evidence from Chinese Buddhism
In the Chinese stock market, controlling shareholders often use inter-corporate loans to expropriate a great amount of cash from listed firms, through a process called “tunneling.” Using a sample of
Trust and the Provision of Trade Credit
State-controlled listed firms in China receive preferential treatment when borrowing from commercial banks; in contrast, private controlled firms rely on informal finance and on trade credit. We
Firms as Financial Intermediaries: Evidence from Trade Credit Data
The authors argue that non-financial firms act as intermediaries, by channeling short-term funds from the financial institutions in an economy, to their best use. Non-financial firms act in this way
Institutional Development, Financial Deepening and Economic Growth: Evidence from China
There have been profound changes in both political and economic institutions in China over the last 20 years. Moreover, the pace of transition has led to variation across the country in the level of
...
...