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The power of belief: Religious traditions and rent-seeking of polluting enterprises in China

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  • Du, Weijian
  • Fan, Yuhuan
  • Liang, Sunfan
  • Li, Mengjie

Abstract

This study investigates the impact of religious traditions on enterprise rent-seeking and the mechanism of this impact. The benchmark analysis shows that the stronger religious traditions are, the weaker rent-seeking behavior becomes. The mechanism analysis shows that religious traditions can inhibit the rent-seeking behavior of enterprises by improving their sense of integrity and strengthening their risk aversion. The moderating effect analysis shows that regional corruption and market monopoly weaken the negative relationship between religious traditions and rent-seeking behavior. This study helps clarify the complementary role played by informal institutions in countries around the world.

Suggested Citation

  • Du, Weijian & Fan, Yuhuan & Liang, Sunfan & Li, Mengjie, 2023. "The power of belief: Religious traditions and rent-seeking of polluting enterprises in China," Finance Research Letters, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:finlet:v:54:y:2023:i:c:s1544612323001745
    DOI: 10.1016/j.frl.2023.103801
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    1. Deng, Youyi & Dong, Kangyin & Taghizadeh-Hesary, Farhad & Xue, Jinjun, 2023. "How does environmental regulation affect the double dividend for energy firms? Evidence from China’s EPT policy," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 807-820.

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