Religiosity and financial distress in US firm

Ines Gharbi, Mounira Hamed-Sidhom, Khaled Hussainey, Janet Ganouati

Research output: Contribution to journalArticlepeer-review


In our paper, we try to test the global impact of religiosity on firm‘s durability. Given that religious firms are more ethics and take less risk, they avoid the costs of misconduct, and they benefit from the good reputation and the excellent relationship with their stakeholders. So, we predict that higher degrees of religiosity can reduce the financial distress. According to this prediction, we detect that corporates headquarters situated in more religious U.S. counties are probably less to suffer from financial problems. We also note that this negative relation becomes stronger during the crisis period. We conclude that the lack of religiosity is a significant cause of the financial difficulty.
Original languageEnglish
JournalInternational Journal of Finance and Economics
Early online date23 Aug 2020
Publication statusEarly online - 23 Aug 2020


  • Religiosity
  • ethics
  • risk aversion
  • financial distress


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