The Relationship between Religiosity and Accounting Conservatism: A Study with Brazilian Students

The present research aims to identify how religiosity is associated with the practice of accounting conservatism by undergraduate students in Accounting. The sample consists of observations from seven Brazilian state and includes the participation of 223 accounting students from public higher education institutions. As a data collection instrument, a questionnaire was administered to the students in order to understand the profile of the respondents and to expose them to simulated situations from the daily life of an accounting professional, with the purpose of assessing whether their behaviors are influenced by the presence of religiosity in their lives. Based on the responses provided by the participants, the data was analyzed using descriptive statistics, factor analysis, and multiple regression models estimated by ordinary least squares (OLS). The regression analyses revealed significant relationships between religiosity and levels of accounting conservatism. The results also indicated that students in later stages of their studies are more conservative than those in earlier stages, and they highlighted a positive relationship between educational level and the degree of conservatism. In an additional analysis, the results demonstrate that more religious students are less prone to misconduct and unethical behavior, while younger students may be more susceptible to unethical behaviors. The findings demonstrate that informal institutions, such as religion, may also be related to decision-making.