8. Religion and Finance

  1. H. Kent Baker and
  2. John R. Nofsinger
  1. Luc Renneboog1 and
  2. Christophe Spaenjers2

Published Online: 12 SEP 2012

DOI: 10.1002/9781118524015.ch8

Socially Responsible Finance and Investing: Financial Institutions, Corporations, Investors, and Activists

Socially Responsible Finance and Investing: Financial Institutions, Corporations, Investors, and Activists

How to Cite

Renneboog, L. and Spaenjers, C. (2012) Religion and Finance, in Socially Responsible Finance and Investing: Financial Institutions, Corporations, Investors, and Activists (eds H. K. Baker and J. R. Nofsinger), John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118524015.ch8

Author Information

  1. 1

    Professor of Corporate Finance, Tilburg University

  2. 2

    Assistant Professor of Finance, HEC Paris

Publication History

  1. Published Online: 12 SEP 2012
  2. Published Print: 28 AUG 2012

ISBN Information

Print ISBN: 9781118100097

Online ISBN: 9781118524015

SEARCH

Keywords:

  • religion;
  • economic attitudes;
  • household finance;
  • culture;
  • portfolio choice

Summary

Individuals' economic attitudes are frequently observed to vary in a systematic manner with religious affiliation or religiosity. As a consequence, religion is also correlated with a range of financial-economic outcomes. Research has established the importance of religion at the macro-economic level, and has shown that the religious environment may affect the behavior of managers and institutional investors. Much less evidence exists on the role of religion in the financial decision-making process at the household level. Therefore, this chapter uses data from a well-recognized household survey to investigate the relationship among religious affiliation, economic attitudes, and saving and investment decisions in the Netherlands. The evidence shows that differences in economic beliefs and preferences can partially explain the higher propensity to save by all religious households and the lower investments in stocks by Catholic households.