Local Culture and Firm Risk Raking: The Role of Religion in Mergers and Acquisitions

10 Pages Posted: 31 Jan 2024

See all articles by Nomalia Manna

Nomalia Manna

Fairfield University

Nathan Mauck

University of Missouri - Kansas City

Corey A. Shank

Miami University


This paper examines both the proportion of Catholics and the overall religiosity at the firm-county level and the risk taking in mergers and acquisitions. The results indicate that higher proportions of Catholics and lower religiosity are associated with riskier behavior in the form of more deal activity, a greater likelihood of diversifying deals, and a greater proportion of private target firms. Importantly, both the specific religion (Catholic) and the overall religiosity are significant predictors of M&A deal risk. These results have important implications on the role of local culture in corporate decision making.

Keywords: M&A, Gambling, Religion

Suggested Citation

Manna, Nomalia and Mauck, Nathan and Shank, Corey, Local Culture and Firm Risk Raking: The Role of Religion in Mergers and Acquisitions. Available at SSRN: https://ssrn.com/abstract=4712122 or http://dx.doi.org/10.2139/ssrn.4712122

Nomalia Manna

Fairfield University ( email )

Nathan Mauck (Contact Author)

University of Missouri - Kansas City ( email )

5100 Rockhill Road
Kansas City, MO 64110-2499
United States

Corey Shank

Miami University ( email )

Oxford, OH 45056
United States

HOME PAGE: http://coreyshank.com

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