Managerial regulatory engagement, access to bank finance and the moderating role of institutional religiosity: a cross-country study

Despite politicians sometimes playing an active agentic role in the outcomes of corporate political activity (CPA), there is limited research on the supply-side dynamics of political markets. Similarly, there is lack of research about the role of normative institutions in CPA outcomes. Using data from over 23,000 firms in 43 African countries and integrating resource dependency and institutional theories, we examine the relationship between managerial regulatory engagement (MRE) - a type of CPA - and access to bank finance, and how this relationship is moderated by country-level religiosity and religion policy regime. The findings show that while the positive impact of MRE on access to bank finance is weakened in countries with high religiosity and more formal religion support, it is weaker in countries with more formal religion restriction. These findings shed light on how firms’ use of CPA to manage resource dependency is affected by the influence of institutional religiosity on the agency of politicians. We offer important theoretical contributions to the literature and generate useful implications for managers and policymakers.