Modelling trust evolution within small business lending relationships

Financial Innovation - Tập 4 - Trang 1-18 - 2018
Ying Tang1, Andrea Moro2, Sandro Sozzo3, Zhiyong Li1
1School of Finance, Southwestern University of Finance and Economics, Chengdu, China
2School of Management, Cranfield University, Bedford, UK
3School of Business, University of Leicester, Leicester, UK

Tóm tắt

Trust is a key dimension in the principal-agent relationship and it has been studied extensively. However, the dynamics, evolution, and intrinsic motivation and mechanisms have received less attention. This paper investigates the intrinsic motivation of trust and it proposes a theoretical model of trust evolution that is based on the notion of ‘trust response’ and ‘trust spiral’. We then specifically focus on trust within the lending relationship between banks and small businesses, and we run numerical simulations to further illustrate the evolution of involved mutual trust over time. Our model provides implications for future research in both trust evolution and small business lending relationships.

Tài liệu tham khảo

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