Religion And The Informal Financing Choice Of Family Company Owners

In the past periods,family firms in China have played an important role in economic market.But under the background with giant banks,they have met many financing problems.In general,financing choice depends on the capital demand and fundamental condition of the company.Because of the characteristic structure,family firms are believed to get along well with the informal financing.Family firms often are built on the basis of personal relationship,which is also the base of informal financing.On the other hand,before the company grows into mature,the informal financing is a better channel to obtain capital.Therefore,the informal financing choice often depends on the firm company owners.Just like normal people,company owners’ values are always influenced by his or her experience.According to population statistics,there are gender,age,education,and also other social background.In the recent years,religion is believed to have important influence on company owners,for example,the risk preference.However,there are few studies on the relation between religion and informal financial.This paper focus on the research about the influence religion has on financial choice.According to the private enterprise questionnaire,the relationship between religion and informal financial choice can be testified.From regression test,there are following conclusion.Firstly,the religion has influence on informal financial choice.Company owners with religion tends to choose informal financial,especially on its beginning period.Secondly,owners under east religion have more tendencies to choose informal religion.When owners own more than 50%of their firms,the relation will be influenced.And the religion atmosphere in different district will influence the financial choice.In conclusion,the religion will have an influence on informal religion choice.