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Corporate social responsibility, intrinsic religiosity, and investment decisions

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  • Shahid, Ahmad Usman
  • Patel, Chris
  • Pan, Peipei

Abstract

We contribute to corporate social responsibility research by examining the influence of intrinsic Islamic religiosity, operationalized by Islamic Worldview, on investment decisions related to a firm faced with alleged environmental degradation in Pakistan. The findings based on a sample of 176 junior business executives establish that investors with higher scores on Islamic Worldview are less likely to invest in a profitable firm that is alleged of environmental degradation than those with lower scores. Guided by their intrinsic religiosity, investors make decisions different from those of the supposedly economically rational person.

Suggested Citation

  • Shahid, Ahmad Usman & Patel, Chris & Pan, Peipei, 2022. "Corporate social responsibility, intrinsic religiosity, and investment decisions," Journal of Behavioral and Experimental Finance, Elsevier, vol. 34(C).
    • Handle: RePEc:eee:beexfi:v:34:y:2022:i:c:s221463502200017x
    DOI: 10.1016/j.jbef.2022.100650
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    More about this item

    Keywords

    Intrinsic Islamic religiosity; Corporate social responsibility; Environmental degradation; Investment decisions;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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