Does Religiosity Influence Venture Capital Investment Decisions?

Theories on contextual behavior (e.g. social norm, self-identify and legitimacy theories) suggest that the religiosity of the geographical area in which an organization operates influence its behavior. Using a sample of 91,020 VC investments in the US, we study whether religiosity influences VC investment decisions. Based on prior literature that finds a positive relation between religiosity and risk aversion we posit that VC located in more...