Religiosity and cross-country differences in trade credit use

Feng Chen, Xiaolin Chen*, Weiqiang Tan, Lin Zheng

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)
2 Downloads (Pure)


Using the firm-level data over 1989–2012 from 53 countries, we find religiosity in a country is positively associated with trade credit use by local firms. Specifically, after controlling for firm- and country-level factors as well as industry and year effects, we show that trade credit use is higher in more religious countries. Moreover, both creditor rights and social trust in a country enhance the positive association between religiosity and trade credit use, while the quality of national-level disclosure mitigates the aforementioned positive association. These results are robust to alternative measures of religiosity, alternative sampling requirements and potential endogeneity concerns.

Original languageEnglish
Pages (from-to)909-941
Number of pages33
JournalAccounting and Finance
Issue numberS1
Early online date1 Jul 2018
Publication statusPublished - Apr 2020

Scopus Subject Areas

  • Accounting
  • Finance
  • Economics, Econometrics and Finance (miscellaneous)

User-Defined Keywords

  • Creditor rights
  • Cross-country differences
  • Religiosity
  • Social trust
  • Trade credit use


Dive into the research topics of 'Religiosity and cross-country differences in trade credit use'. Together they form a unique fingerprint.

Cite this