Motivated by the limited evidence on the positive link between social capital, religion and firm performance, this paper explores these potential drivers of firm performance at the firm rather than macro-level by employing a novel approach: we capture social capital and religion at a community level rather than focus on the narrow aspect of entrepreneurs’ own social network and religious beliefs. Using Principal Component Analysis to aggregate various trust, norm, network and religious belief-related variables to construct social capital and religion variables, this paper identifies an overall positive and significant effect of social capital and religion on firm performance in Denmark. These effects are robust to different levels of aggregation (sample structure), different sampling years and alternative measures of firm performance (return on asset, current ratio, solvency ratio and profit margin).
|Publication status||Published - Jun 2015|
|Event||Uddevalla Symposium on Regional Development in an International Context - Syddansk Universitet, Odense, Denmark|
Duration: 11 Jun 2015 → 13 Jun 2015
Conference number: 18th
|Conference||Uddevalla Symposium on Regional Development in an International Context|
|Period||11/06/15 → 13/06/15|
Steiner, B., & Wang, C. (2015). What drives business performance in Denmark: Does social capital and religious diversity matter?. Paper presented at Uddevalla Symposium on Regional Development in an International Context, Odense, Denmark.