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Religious beliefs, socially responsible investment, and cost of debt: Evidence from entrepreneurial firms in India

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  • Li, Changhong
  • Xu, Yuan
  • Gill, Amarjit
  • Haider, Zulfiquer Ali
  • Wang, Yuan

Abstract

We use hand-collected survey data to study the joint effect of religious beliefs and socially responsible investment on the cost of debt. We also examine the moderating effect of an entrepreneur's gender on the impacts of religious beliefs on socially responsible investment. Our results show that entrepreneurial firms with religious owners invest more in social responsibility, and those with more socially responsible investment pay a lower cost of debt. We also find that the effect of religious beliefs on socially responsible investment is stronger when the entrepreneur is female.

Suggested Citation

  • Li, Changhong & Xu, Yuan & Gill, Amarjit & Haider, Zulfiquer Ali & Wang, Yuan, 2019. "Religious beliefs, socially responsible investment, and cost of debt: Evidence from entrepreneurial firms in India," Emerging Markets Review, Elsevier, vol. 38(C), pages 102-114.
    • Handle: RePEc:eee:ememar:v:38:y:2019:i:c:p:102-114
    DOI: 10.1016/j.ememar.2018.12.001
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