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How does regional religiosity influence corporate innovation? New evidence from China

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  • Xuejie Yu
  • Jing Liao
  • David Smith

Abstract

This study examines the impact of regional religiosity on corporate innovation. We find that religiosity has a significantly positive influence on innovation performance of Chinese listed firms. The mechanism analysis indicates that regional religiosity enhances the level of regional social fairness, which explains the positive relation between religiosity and innovation of firms headquartered in the region. However, regional religiosity, an informal institutional factor, only promotes innovation in privately-owned corporations, not in state-owned enterprises in which political objectives are prevalent and which are therefore less likely to be affected by informal institutional factors.

Suggested Citation

  • Xuejie Yu & Jing Liao & David Smith, 2024. "How does regional religiosity influence corporate innovation? New evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 31(9), pages 811-818, May.
    • Handle: RePEc:taf:apeclt:v:31:y:2024:i:9:p:811-818
    DOI: 10.1080/13504851.2022.2152416
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