Trust and contracting
Prior research has shown that trust has a positive effect on the economic welfare of nations. We investigate this result by analyzing the effect of endowed trust on agency problems within organizations. We find that firms located in U.S. counties where trust is more prevalent suffer less from agency...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | text |
| Language: | English |
| Published: |
Institutional Knowledge at Singapore Management University
2015
|
| Subjects: | |
| Online Access: | https://ink.library.smu.edu.sg/soa_research/1730 https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=2757&context=soa_research |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Singapore Management University |
| Language: | English |
| id |
sg-smu-ink.soa_research-2757 |
|---|---|
| record_format |
dspace |
| spelling |
sg-smu-ink.soa_research-27572018-09-21T02:50:17Z Trust and contracting HILARY, Gilles HUANG, Sterling Prior research has shown that trust has a positive effect on the economic welfare of nations. We investigate this result by analyzing the effect of endowed trust on agency problems within organizations. We find that firms located in U.S. counties where trust is more prevalent suffer less from agency problems and display higher profitability and higher valuation. In addition, these firms utilize lower power compensation schemes and are less likely to fire their CEOs, while they take a harsher view of ethical breaches. Overall, our results suggest that trust is an effective way of mitigating moral hazard problems. 2015-07-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/soa_research/1730 https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=2757&context=soa_research http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Accountancy eng Institutional Knowledge at Singapore Management University Trust Moral Hazard Contracting Accounting Finance and Financial Management |
| institution |
Singapore Management University |
| building |
SMU Libraries |
| country |
Singapore |
| collection |
InK@SMU |
| language |
English |
| topic |
Trust Moral Hazard Contracting Accounting Finance and Financial Management |
| spellingShingle |
Trust Moral Hazard Contracting Accounting Finance and Financial Management HILARY, Gilles HUANG, Sterling Trust and contracting |
| description |
Prior research has shown that trust has a positive effect on the economic welfare of nations. We investigate this result by analyzing the effect of endowed trust on agency problems within organizations. We find that firms located in U.S. counties where trust is more prevalent suffer less from agency problems and display higher profitability and higher valuation. In addition, these firms utilize lower power compensation schemes and are less likely to fire their CEOs, while they take a harsher view of ethical breaches. Overall, our results suggest that trust is an effective way of mitigating moral hazard problems. |
| format |
text |
| author |
HILARY, Gilles HUANG, Sterling |
| author_facet |
HILARY, Gilles HUANG, Sterling |
| author_sort |
HILARY, Gilles |
| title |
Trust and contracting |
| title_short |
Trust and contracting |
| title_full |
Trust and contracting |
| title_fullStr |
Trust and contracting |
| title_full_unstemmed |
Trust and contracting |
| title_sort |
trust and contracting |
| publisher |
Institutional Knowledge at Singapore Management University |
| publishDate |
2015 |
| url |
https://ink.library.smu.edu.sg/soa_research/1730 https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=2757&context=soa_research |
| _version_ |
1681132976270737408 |