Do progressive social norms affect economic outcomes? Evidence from corporate takeovers

Yangyang Chen, Edward J. Podolski, S. Ghon Rhee, Madhu Veeraraghavan

Research output: Contribution to journalArticleResearchpeer-review

4 Citations (Scopus)


This paper investigates how religion-induced attitudes toward change and diversity affect corporate acquisition decisions. By studying the variation in religious adherence across U.S. counties, we find that acquirer announcement returns and total synergy are larger in counties in which progressive religious denominations are popular. In contrast, conservative religious denominations affect neither acquirer announcement returns nor total synergies. Our evidence indicates that religion-induced social norms are an important driver of large corporate transactions, while various religious denominations affect corporate outcomes differently.

Original languageEnglish
Pages (from-to)76-95
Number of pages20
JournalJournal of Empirical Finance
Publication statusPublished - 1 Mar 2017


  • Behavioral finance
  • Corporate takeovers
  • Mainline Protestants
  • Religion

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