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Financial risk-taking, religiosity and denomination heterogeneity

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  • Li, Jian

Abstract

We document a relationship between religiosity and financial risk-taking using geographical variation in Europe. We find that more religious households engage in less risk-taking, and the effect is more pronounced where Protestantism is more widespread than Catholicism. These results suggest that the content of religious doctrines rather than religiosity per se shape risk-taking. We confirm these results using an alternative European survey, evidence from China, and a lab experiment.

Suggested Citation

  • Li, Jian, 2022. "Financial risk-taking, religiosity and denomination heterogeneity," Journal of Empirical Finance, Elsevier, vol. 66(C), pages 74-98.
    • Handle: RePEc:eee:empfin:v:66:y:2022:i:c:p:74-98
    DOI: 10.1016/j.jempfin.2021.12.005
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