Religious Beliefs and Local Government Financing, Investment and Cash Holding Decisions

Chen, Yangyang and Murgulov, Zoltan and Rhee, Ghon S and Veeraraghavan, Madhu (2013) Religious Beliefs and Local Government Financing, Investment and Cash Holding Decisions. TAPMI, Manipal.

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Abstract

This paper is the first to examine the association between the degree of religiosity and the local government financing, investment and cash holding decisions. Using an aggregate sample of 12,154 county-year observations for census years between 1992 and 2007 we show that the degree of religiosity is negatively correlated with local government debt and capital expenditure and positively correlated with the level of cash holdings. Our results indicate that local governments in counties with a higher degree of religiosity are more conservatively managed, i.e. they borrow less and spend less while holding significantly more cash than local governments with a lower degree of religiosity. We conduct a range of robustness tests and our findings hold

Item Type:	TAPMI Working Papers
Uncontrolled Keywords:	Religiosity; local government financing; capital expenditure; cash holdings; local government debt.
Subjects:	Finance
Divisions:	Finance and Strategy
Depositing User:	Ms. Vanitha K
Date Deposited:	14 Nov 2018 09:26
Last Modified:	14 Nov 2018 09:26
URI:	http://tapmi.informaticsglobal.com/id/eprint/269

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