Does branch religiosity influence bank risk taking?

Chircop, Justin and Fabrizi, Michele and Ipino, Elisabetta and Parbonetti, Antonio (2017) Does branch religiosity influence bank risk taking? Journal of Business Finance and Accounting, 44 (1-2). pp. 271-294. ISSN 0306-686X

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Using branch-level data on public and private US banking institutions, we investigate the importance of branch religiosity in shaping bank risk-taking behavior. Our results show robust evidence that branch religiosity is negatively related to bank risk-taking. This effect persists after controlling for several bank-level and county-level variables that might correlate with religiosity. Moreover, this result is robust to controlling for headquarter religiosity, suggesting that the effect of branch religiosity is additive and not washed out by headquarter religiosity. Overall, our findings document that headquarter religiosity does not capture the full effect of religiosity on bank behavior, as claimed by previous research, but that the religiosity of the geographic area in which the bank operates significantly influences bank behavior.

Item Type:
Journal Article
Journal or Publication Title:
Journal of Business Finance and Accounting
Additional Information:
This is the peer reviewed version of the following article:Chircop, J., Fabrizi, M., Ipino, E. and Parbonetti, A. (2017), Does Branch Religiosity Influence Bank Risk-Taking?. Journal of Business Finance & Accounting, 44: 271–294. doi:10.1111/jbfa.12227 which has been published in final form at This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Uncontrolled Keywords:
?? financebusiness, management and accounting (miscellaneous)accounting ??
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Deposited On:
18 Oct 2016 08:06
Last Modified:
31 Dec 2023 00:44