[Home ] [Archive]   [ فارسی ]  
:: Main :: About :: Current Issue :: Archive :: Search :: Submit :: Contact ::
Main Menu
Home::
Journal Information::
About the Journal
Aims& Scopes
Editorial Board ::
Articles archive::
All Issues
Current Issue
Publication Ethics::
For Authors::
Guide for Authors
Submission Form
Peer Review Process::
Reviewers Section
Registration::
Registration Form
Site Facilities::
Site map
Search contents
FAQ
Top 10 contents
Inform to friends
Contact us::
Contact Information
Contact us
::
Search in website

Advanced Search
..
Receive site information
Enter your Email in the following box to receive the site news and information.
..
:: Volume 8, Issue 16 (3-2024) ::
aapc 2024, 8(16): 393-424 Back to browse issues page
Evaluating the Effects of Religious Beliefs and Cultural Elements on the Risk of Falling Stock Prices Yasser Rezaei Pitenoei
Yasser Rezaei Pitenoei1 , Mehrdad Sadr Ara 2, Hamed Omrani3
1- Associate Professor, Department of Economics and Accounting, Faculty of Management & Economics, University of Guilan, Rasht, Iran.(Y.rezaeipitenoei@Guilan.ac.ir) & Associate Professor, Department of Economics and Accounting, Faculty of Management & Economics, University of Guilan, Rasht, Iran.(Y.rezaeipitenoei@Guilan.ac.ir)
2- University of Guilan , Mehrdadsadrara@guilan.ac.ir
3- University of Kharazmi & Assistant Professor, Department of Accounting, University of Kharazmi, Iran. omrani_h@khu.ac.ir
Abstract:   (604 Views)
Falling stock prices is an important issue for shareholders and investors, which is affected by different factors. Despite the importance of this issue, the behavioral characteristics of managers as responsible for preparing financial statements have not been paid attention to. Among these characteristics, we can mention religion and management culture. Based on this argument, the present study examines the effect of religious beliefs (substitution or complementation effect) and cultural elements on the risk of falling stock prices of listed companies. The statistical sample studied in this research is 70 companies as well as the board of directors and active persons in the accounting and financial department of these firms admitted to the Tehran Stock Exchange in 2022.For this purpose, to measure the risk of stock price fall, two measures of negative skewness of stock returns and low to high volatility have been used. Also, Hofstede's questionnaire (2001) was used to measure culture, and Montenegro's model (2017) was used to examine the influence of religious beliefs. The results were analyzed using multivariate regression models. The findings of the research indicate that among the dimensions of culture, the dimension of power distance and the level of masculinity do not affect the risk of falling stock prices, and the dimensions of uncertainty avoidance have a negative effect and the dimension of individualism has a positive effect on the risk of falling stock prices. Also, the obtained results indicate a negative and significant effect between religious beliefs of managers on the risk of falling stock prices.
Keywords: Religious Beliefs, Culture, Stock price crash risk, Substitution and Complementary Theory
Full-Text [PDF 1245 kb]   (208 Downloads)    
Type of Study: Applicable | Subject: Special
Received: 2025/03/10 | Accepted: 2024/06/17 | Published: 2024/03/19
References
1. Abdelsalam, O. Elnahass, M. Batten, J. A. and S. Mollah, 2021. New insights into bank asset securitization: the impact of religiosity. J. Finance. Stab. 54, 100854. http://doi.org/10.1016/j.jfs.2021.100551.
2. Agle, B. R., and H. Van Buren. 1999. God and Mammon: The Modern Relationship. Business Ethics Quarterly, 9, 563–582.
3. Ahmed, A.S., and S. Duellman. 2013. Managerial overconfidence and accounting conservatism. Journal of Accounting Research 51(1):1-30.
4. Akhter, T. and A. K. Azad. 2023. Religiosity and bank earnings management: Revisiting international evidence, China Journal of Accounting Research, Volume 16, Issue 2, June 2023, 100290.
5. Barro, R., and R. McCleary. 2003. Religion and Economic Growth. American Sociological Review, 68, 760–781.
6. Bradshaw, M.T., A.P. Hutton, A.J. Marcus, and H. Tehranian. 2010. Opacity, Crashes and the option Smirk Curve. Available at SSRN: https://ssrn.com/abstract=1640733
7. Calkins, M. 2000. Recovering Religion’s Prophetic Voice for Business Ethics. Journal of Business Ethics, 23, 339–352.
8. Callen, J.L., and X. Fang. 2011. Institutional investor stability and crash risk: Monitoring versus short-termism?Journal of Banking & Finance 37(8):3047-3063.
9. Callen, J.L., and X., Fang. 2015. Religion and stock price crash risk. Journal of Financial and Quantitative Analysis 50(1-2):169–195.
10. Cao, C., C. Xia, and K.C. Chan. 2016. Social trust and stock price crash risk: Evidence from China. International Review of Economics and Finance 46:148-165.
11. Chen, D., X., Hu, S., Liang, and F., Xin. 2013. Religious tradition and corporate governance. Economic Research Journal 59(10):71–84.
12. Chen, J., H., Hong, and J.C. Stein. 2001. Forecasting crashes: trading volume, past returns, and conditional skewness in stock prices. Journal of Financial Economics 61(3):345-381.
13. Chen, Y., P.Y. Dou, S.G. Rhee, C. Truong, and M. Veeraraghavan. 2015. National culture and corporate cash holdings around the world. Journal of Banking and Finance 50:1-18.
14. Chui, A.C.W., S. Titman, and K.C.J. Wei. 2010. Individualism and momentum around the world. Journal of Finance 65(1):361-392.
15. Dang, T.L., R., Faff, L.H. Luong, and L. Nguyen. 2017.National Culture and Stock Price Crash Risk, European Financial Management, Forthcoming, Available at: SSRN:https://ssrn.com/abstract=2711204
16. Du, X. 2013. Does religion matter to owner–manager agency costs? Evidence from China. J. Bus. Ethics 118 (2):319–347.
17. Du, X., W. Jian, S. Lai, W. Du, and H. Pei. 2015. Does religion mitigate earnings management? evidence from China. Journal of Business Ethics 131(3):699–749.
18. Du, X., W. Jian, Y.J. Du, W. Feng, Q. Zeng. 2014. Religion, the nature of ultimate owner, and corporate philanthropic giving: evidence from China. J. Bus. Ethics 123(2):235–256.
19. Dyreng, S., W. Mayew, and C. Williams. 2012. Religious social norms and corporate financial reporting. Journal of Business Finance and Accounting 39(7-8):845–875.
20. EI Ghoul, S., O. Guedhami, Y. Ni, J. Pittman, S. and Saadi. 2012. Does religion matter to equity pricing? Journal of Business Ethics 111(4):491–518.
21. Elnahass, M. Salama, Aly, and N, Yusuf. 2022. Earning Management and internal governance mechanisms: The role of religiosity. Research in International Business and Finance 59 (2022) 101565.
22. Ferris, S.P., N. Jayaraman, and S. Sabherwal. 2013. CEO overconfidence and international merger and acquisition activity. Journal of Financial and Quantitative Analysis 48(1):137-164.
23. Francis, B., I. Hasan, and L.X. Li. 2014. Abnormal real operations, real earnings management, and subsequent crashes in stock prices. Review of Quantitative Finance and Accounting 46(2):217–260.
24. Graham, J. R.; C. R. Harvey; and S. Rajgopal. 2005. The Economic Implications of Corporate Financial Reporting. Journal of Accounting and Economics, 40, 3–73.
25. Grullon, G., G. Kanatas, and J. Weston. 2010. Religion and Corporate (Mis)Behavior. Available at: https://ssrn.com/ abstract = 1472118
26. Hofsted, G. (2001). Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. 2nd Edition, London: Sage Publications.
27. Hong, H., and J. C. Stein. 2003. Differences of opinion, short-sales constraints, and market crashes. Review of Financial Studies 16(2):487-525.
28. Hutton, A.P., A.J. Marcus, and H. Tehranian. 2009. Opaque financial reports, R2, and crash risk. Journal of Financial Economics94(1):67–86.
29. Javers, E. 2011. Religion, Not Money, Often Motivates Corporate Whistleblowers. Available at: http:// www.cnbc.com/id/ 41494697
30. Jin, L., and S. Myers, 2006. R2 around the world: new theory and new tests. Journal of Financial Economics 79 (2):257–292.
31. Kennedy, E. J., and L. Lawton. 1998. Religiousness and Business Ethics. Journal of Business Ethics, 17, 163–175.
32. Khan, M. and R.L. Watts. 2009. Estimation and Empirical Properties of a Firm Year Measure of Accounting Conservatism. Journal of Accounting and Economics 48(2-3):132-150.
33. Kim, J.B., Y. Li, and L. Zhang. 2011. Corporate tax avoidance and stock price crash risk: firm-level analysis. Journal of Financial Economics 100(3):639–662.
34. Kothari, S.P., S. Shu, and P. D. Wysocki. 2009. Do managers withhold bad news? Journal of Accounting Research 47(1):241-276.
35. Lehrer, E. L. 2004. Religion as a Determinant of Economic and Demographic Behavior in the United States. Population and Development Review, 30, 707–726.
36. Li, W., and G. Cai. 2016. Religion and stock price crash risk: Evidence from China, China Journal of Accounting Research 9(3):235-250.
37. Li, X., S. S. Wang, and X. Wang. 2017. Trust and stock price crash risk: Evidence from China.Journal of Banking and Finance 76:74–91.
38. Malmendier, U., G. Tate, and J. Yan. 2011. Overconfidence and early-life experiences: The effect of managerial traits on corporate financial policies. Journal of Finance 66 (5):1687-1733.
39. McCullough, M. E., and B. L. B. Willoughby. 2009. Religion, Self-Regulation and Self-Control: Association, Explanation and Implications, Psychological Bulletin, 135, 69–93.
40. Montenegro, T.M. 2017. Religiosity and corporate financial reporting: evidence from a European country. Journal of Management, Spirituality & Religion 14(1):48-80.
41. North, D.C. 1990. Institutions, Institutional Change and Economic Performance. Cambride, UK: Cambridge University Press.
42. Smith, C. 2003. Theorizing Religious Effects among American Adolescents. Journal for the Scientific Study of Religion, 42, 17–30.
43. Turner, J. H. 1997. The Institutional Order. New York, NY: Addison-Wesley Educational Publishers.
44. Vitell, S. J. 2009. The Role of Religiosity in Business and Consumer Ethics: A Review of the Literature. Journal of Business Ethics, 90, 155–167.
45. Williamson, O. E. 2000. The new institutional economics: Taking stock, looking ahead. Journal of Economic Literature 38(3):595-613.
46. Xu, N., X. Jiang, K.C. Chan, and Z. Yi. 2013. Analyst coverage, optimism, and stock price crash risk: evidence from China. Pacific Basin Finance Journal 25(11):217–239.
Add your comments about this article
Your username or Email:

CAPTCHA

XML   Persian Abstract   Print

Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Rezaei Pitenoei Y, Sadr Ara M, Omrani H. Evaluating the Effects of Religious Beliefs and Cultural Elements on the Risk of Falling Stock Prices Yasser Rezaei Pitenoei. aapc 2024; 8 (16) :393-424
URL: http://aapc.khu.ac.ir/article-1-1248-en.html
Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Volume 8, Issue 16 (3-2024) Back to browse issues page
دوفصلنامه علمی حسابداری ارزشی و رفتاری journal of Value & Behavioral Accounting
Persian site map - English site map - Created in 0.08 seconds with 37 queries by YEKTAWEB 4666