Religiosity and cross‐country differences in trade credit use

Feng CHEN, Xiaolin CHEN, Weiqiang TAN, Lin ZHENG

Research output: Contribution to journalArticlespeer-review

13 Citations (Scopus)


Using the firm-level data over 1989–2012 from 53 countries, we find religiosity in a country is positively associated with trade credit use by local firms. Specifically, after controlling for firm- and country-level factors as well as industry and year effects, we show that trade credit use is higher in more religious countries. Moreover, both creditor rights and social trust in a country enhance the positive association between religiosity and trade credit use, while the quality of national-level disclosure mitigates the aforementioned positive association. These results are robust to alternative measures of religiosity, alternative sampling requirements and potential endogeneity concerns. Copyright © 2018 Accounting and Finance Association of Australia and New Zealand
Original languageEnglish
Pages (from-to)909-941
JournalAccounting & Finance
Issue numberS1
Early online date01 Jul 2018
Publication statusPublished - Apr 2020


Chen, F., Chen, X., Tan, W., & Zheng, L. (2020). Religiosity and cross‐country differences in trade credit use. Accounting & Finance, 60(S1), 909-941. doi: 10.1111/acfi.12389


  • Creditor rights
  • Cross-country differences
  • Religiosity
  • Social trust
  • Trade credit use


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