Trust, Risk, and Shareholder Decision Making: An Investor Perspective on Corporate Governance

Business Ethics Quarterly 11 (1):177-193 (2001)
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Abstract

Abstract:Shareholders’ relationship to the firm is a central theme in corporate governance, yet the investors’ perspective has been virtually ignored in governance research. This paper attempts to explain the previously unexplored role of trust in the investor decision-making process. The proposed model suggests that trust acts as the antecedent of the risk variable in existing investor decision-making models. Stock ownership involves both financial and ethical risk, which by definition requires some level of implicit trust in management and the market.

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1052150X

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10.2307/3857876

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Citations of this work

Solidarity - Enlightened Leadership.Ignace Haaz - 2016 - In Christoph Stückelberger, Walter Fust & Obiora Ike (eds.), Global Ethics for Leadership: Values and Virtues for Life. Globethics.net. pp. 163-174.
Internal corporate governance and personal trust.G. J. Rossouw - 2009 - African Journal of Business Ethics 4 (1).

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References found in this work

Business Ethics and Stakeholder Analysis.Kenneth E. Goodpaster - 1991 - Business Ethics Quarterly 1 (1):53-73.
The Normative Theories of Business Ethics.John Hasnas - 1998 - Business Ethics Quarterly 8 (1):19-42.
The Normative Theories of Business Ethics.John Hasnas - 1998 - Business Ethics Quarterly 8 (1):19-42.
Fiduciary Duties and the Shareholder-Management Relation.John R. Boatright - 1994 - Business Ethics Quarterly 4 (4):393-407.
Fiduciary Duties and the Shareholder-Management Relation.John R. Boatright - 1994 - Business Ethics Quarterly 4 (4):393-407.

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