Does Local Religiosity Impact Corporate Social Responsibility?

36 Pages Posted: 13 Sep 2011 Last revised: 16 May 2012

See all articles by Sean T. McGuire

Sean T. McGuire

Texas A&M University - Department of Accounting

Nathan J. Newton

Florida State University

Thomas C. Omer

University of Nebraska at Lincoln - School of Accountancy

Nathan Y. Sharp

Texas A&M University - Department of Accounting

Date Written: February 2012

Abstract

Recent research indicates the social norms of geographic areas where firms are headquartered have an impact on corporate decision-making. Drawing on instrumental stakeholder theory and social norm theory, we extend this line of research by examining the influence of local religiosity on corporate social responsibility (CSR). This study shows that firms headquartered in areas with a strong religious presence receive lower ratings for CSR, and the market rewards these firms for their choices. Our findings contribute to understanding factors that impact individual firm choices regarding CSR as well as demonstrating the role of religious attitudes in corporate behavior.

Keywords: corporate social responsibility, CSR, religion, religious influence

JEL Classification: D21, D60, M10, M14, Z12

Suggested Citation

McGuire, Sean T. and Newton, Nathan J. and Omer, Thomas C. and Sharp, Nathan Y., Does Local Religiosity Impact Corporate Social Responsibility? (February 2012). Available at SSRN: https://ssrn.com/abstract=1926387 or http://dx.doi.org/10.2139/ssrn.1926387

Sean T. McGuire

Texas A&M University - Department of Accounting ( email )

430 Wehner
College Station, TX 77843-4353
United States

Nathan J. Newton

Florida State University ( email )

Rovetta Business Bldg. (RBA)
College of Business
Tallahassee, FL 32306-1110
United States

HOME PAGE: http://https://business.fsu.edu/person/nate-newton

Thomas C. Omer

University of Nebraska at Lincoln - School of Accountancy ( email )

307 College of Business Administration
Lincoln, NE 68588-0488
United States

Nathan Y. Sharp (Contact Author)

Texas A&M University - Department of Accounting ( email )

4353 TAMU
College Station, TX 77843-4353
United States
979-845-0338 (Phone)

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