The Impact of Culture and Religion in Financing Decisions : The Moderating Role of CSR

Cong ZHANG, Rashid MEHMOOD*, Alessia PALMA, Zhen WANG

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)peer-review


The corporate social responsibility (CSR) plays a vital role in enhancing culture and religious activities which are critical factors of firms’ financing decisions. This study investigates the moderating role of CSR on the relationship of culture, religion and financing decisions in Asian emerging economies. Findings suggest that predominant religion as well as cultural traits have a substantial bearing on the proportion of a firm's capital structure. Cultural dimensions such as power distance and uncertainty avoidance have negative while individualism has positive effect on firms’ capital structure. Further, the firms operating in Islamic religion countries have less debt ratios as compared to the firms operating in Christianity and Hinduism that rely more on debt financing. CSR negatively moderates the relationship of culture, religion and firms’ financing decisions. Capital structure disparities between enterprises with distinct country-of-origin cultures and religions should be better understood to have the optimal level of financing.
Original languageEnglish
Article number102360
JournalResearch in International Business and Finance
Early online date13 Apr 2024
Publication statusE-pub ahead of print - 13 Apr 2024

Bibliographical note

Publisher Copyright:
© 2024 Elsevier B.V.


  • Asian emerging economies
  • CSR
  • Culture
  • Financing decision
  • Religion


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