Work-life balance: Evidence from Muslim analysts during Ramadan

This paper examines how professionals adjust work to challenges posed by their personal life in the setting of financial analysts. Using a Difference-in-Differences (DID) design that compares Muslim and non-Muslim analysts in the U.S. during and surrounding Ramadan fasting periods, we find that Muslim analysts slightly delay their earnings forecasts, exhibit more herding without sacrificing forecast accuracy, and issue less optimistically biased forecasts during Ramadan. They are also more long-term oriented, and more bullish in recommendations, while they engage less actively with managers during conference calls. These findings are largely consistent with the “dual-channel” effects of Ramadan where the physiological effect of fasting intertwines with the spiritual effect of Ramadan. Further, our findings suggest that Muslim analysts shift their efforts and attention during Ramadan, highlighting the importance of flexible work schedule for maximizing employees' productivity and well-being.