Religion and Derivative Use: Evidence from the Hedge Fund Industry
We examine how local religions influence derivative usage in the hedge fund industry. Measuring religiosity by the ratio of religious adherents in the county of a U.S. hedge fund headquarters, we find that religiosity is negatively related to the probability of hedge funds using derivatives for spec...
| Main Author: | |
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| Contributors: | ; |
| Format: | Electronic Article |
| Language: | English |
| Check availability: | HBZ Gateway |
| Journals Online & Print: | |
| Interlibrary Loan: | Interlibrary Loan for the Fachinformationsdienste (Specialized Information Services in Germany) |
| Published: |
2023
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| In: |
Journal for the scientific study of religion
Year: 2023, Volume: 62, Issue: 2, Pages: 451-475 |
| Standardized Subjects / Keyword chains: | B
USA
/ Catholicism
/ Protestantism
/ Religiosity
/ Hedge funds
/ Derivative (Securities)
/ Speculation (Economy)
|
| RelBib Classification: | AE Psychology of religion CB Christian life; spirituality KBQ North America KDB Roman Catholic Church KDD Protestant Church NCE Business ethics |
| Further subjects: | B
derivatives
B Religion B hedge funds B Religiosity |
| Online Access: |
Volltext (lizenzpflichtig) Volltext (lizenzpflichtig) |
| Summary: | We examine how local religions influence derivative usage in the hedge fund industry. Measuring religiosity by the ratio of religious adherents in the county of a U.S. hedge fund headquarters, we find that religiosity is negatively related to the probability of hedge funds using derivatives for speculative purposes. In contrast, funds in regions with higher ratios of Catholics to Protestants are more likely to engage in speculation-based trading of derivatives. Finally, we show that the effects of local religion are more pronounced if the hedge fund size is small. Overall, our study highlights the significant role of local religion in shaping the purpose of hedge fund derivative usage. |
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| ISSN: | 1468-5906 |
| Contains: | Enthalten in: Journal for the scientific study of religion
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| Persistent identifiers: | DOI: 10.1111/jssr.12837 |