If you are looking for honest companies to invest in, check out businesses based in more religious communities, suggests a new paper.
The paper says that businesses with head offices in places with high levels of "religiosity" were less likely to experience stock price crashes as a result of not disclosing bad financial news. And it didn't matter whether those at the top were religious or not. Just being in a town where social norms are influenced by religious codes of behavior was enough to rub off on the companies operating there.