Cultural Determinant of Board Structure: Religion and Gambling Preference

This study investigates one of the cultural determinants of board structure by examining the impact of the geographic divergence in gambling preference induced by religion. Using the Catholic- to-Protestant ratio for counties in the United States to proxy for gambling preference, we find that firms headquartered in gambling-prone regions tend to have smaller and less independent boards. We argue that the religiously induced risk-taking environment of a county influences the firms headquartered there and this influence is reflected in the firm’s board structure. Thus, this study contributes to the literature on cultural determinants of board structure.