Name
Religiosity and Business Strategy: Moderating Effects of External Audit Quality Control
Date & Time
Sunday, July 5, 2026
Description
This research examines how religiosity affects corporate business strategies, with a particular emphasis on the Miles and Snow (1978) typology of "prospector" versus "defender" strategies. Utilizing a dataset of U.S. firms from 1995 to 2021, our findings demonstrate a strong positive correlation between religiosity and the adoption of defender-type strategies. Our cross-sectional analysis indicates that this relationship is more evident among firms audited by Big-4 auditors. In summary, our study suggests that regions with low religiosity are more likely to see prospector strategies due to managers' self-interested behaviors. The results are still robust when we conduct a two-stage least squares regression to mitigate the concern of potential endogeneity issues and use the ordered logistic regression as an alternative method.
Md Jahidur Rahman
Keywords
business strategy; religiosity; Big-4 auditors
Theme
AUDITING
Author 1
Stella Cho
Author 2
Brian M. Lam
Author 3
Lina Z. Li
Author 4
Md Jahidur Rahman