Value of faith: Religious entrepreneurs and corporate longevity

Abstract

AbstractUsing the data on the religious belief of entrepreneurs in Chinese family firms, this study shows that religious entrepreneurs significantly positively affect corporate longevity, echoing the view that religious entrepreneurs can obtain managerial skills and share managerial knowledge about corporate operation through the conduit of religious attendance, and thus firms with religious entrepreneurs are more long-lived. Moreover, the development of factor markets across different provinces in China reinforces this positive relation between religious entrepreneurs and corporate longevity. Furthermore, qualitatively similar results can be found from various robustness tests, and our conclusions still stand after controlling for the potential selection bias in the research sample. Lastly, after differentiating different religious beliefs, the positive relation between religious entrepreneurs and corporate longevity is only valid for Western religious beliefs (but not for Eastern religious beliefs), and the reinforced role of the development of factor markets only stands for Eastern religious beliefs.