Does religion affect cost stickiness? Evidence from China.

Using Chinese A-share listed industrial firms between 2009 and 2016, we find that greater religious influence is negatively associated with firm cost stickiness. This negative association is more significant for firms displaying higher agency costs, lower risk aversion, and a higher probability of corruption. Our findings highlight the importance of informal institutions such as religion on corporate behaviours such as cost stickiness. [ABSTRACT FROM AUTHOR]