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The Influence of Religious Tradition and Social Trust on Corporate Cash Holdings

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LISS 2020

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Abstract

We examine the impact of religious traditions and social trust on corporate cash holdings from 2007 to 2015 with the listed companies in China as the research sample. The empirical results show that in the areas where the traditional religion and social trust are higher, the cash holding of listed companies is lower, and social trust has the interaction enhancing effect on the impact of religious traditions on corporate cash holdings. Compared with the state-owned listed companies, the traditional religion and social trust have a negative impact on cash holdings in non-state-owned listed companies. Further research shows that the influence of traditional religion and social trust on the cash holdings of enterprises is mainly manifested as an over-curbing effect on the holding of cash. Traditional religion and social trust both as informal institutional factors, have complementary effect on formal institutional factors, such as the marketization process, the level of government governance and the level of legalization. A series of robustness tests prove the reliability of the above conclusion. This article provides empirical evidence that religious traditions and social trust influence the cash holdings of firms.

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Author information

Authors and Affiliations

  1. Aviation Industry Corporation of China, Ltd., Beijing, China

    Zhijia Peng

  2. University of Science and Technology Beijing, Beijing, China

    Ming Xiao & Lin Mu

Authors
  1. Zhijia Peng
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  2. Ming Xiao
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  3. Lin Mu
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Corresponding author

Correspondence to Zhijia Peng .

Editor information

Editors and Affiliations

  1. Beijing Jiaotong University, Beijing, China

    Shifeng Liu

  2. Budapest University of Technology and Economics, Budapest, Hungary

    Gábor Bohács

  3. Beijing Jiaotong University, Beijing, China

    Xianliang Shi

  4. International Center for Informatics Research, Beijing Jiaotong University, Beijing, China

    Xiaopu Shang

  5. Beijing Logistics Informatics Research Base, Beijing Jiaotong University, Beijing, China

    Anqiang Huang

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© 2021 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

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Peng, Z., Xiao, M., Mu, L. (2021). The Influence of Religious Tradition and Social Trust on Corporate Cash Holdings. In: Liu, S., Bohács, G., Shi, X., Shang, X., Huang, A. (eds) LISS 2020. Springer, Singapore. https://doi.org/10.1007/978-981-33-4359-7_5

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