Financial Impact of Trust and Institutional Quality around the World

0564956 - ÚTIA 2023 CZ eng V - Výzkumná zpráva
Kapounek, S. - Kočenda, Evžen - Kouba, L.
Financial Impact of Trust and Institutional Quality around the World.
Praha: IES UK, 2022. 36 s. IES working papers, 28/2022.
Institucionální podpora: RVO:67985556
Klíčová slova: social capital * social trust * institutional trust * uncertainty * crowdfunding * financial markets
Obor OECD: Finance
http://library.utia.cas.cz/separaty/2022/E/kocenda-0564956.pdf

We investigate the financial impact of social trust, institutional quality, and regulations. As a testing ground we employ a unique, large, and hand-crafted dataset of more than 850 000 lending-based crowdfunding projects from 155 platforms across 55 countries during 2005–2018. We show that the impact of social trust is positive but economically less pronounced than that of institutional trust proxied by legal and property rights protection and regulation. Moreover, the financial impact of social trust is greater at the national level, while impact of institutional quality dominates at the international level. Nevertheless, the financial impact of trust and institutional quality around the world is positive, which is an encouraging implication under increasing anonymity and internationalization of financial environment.
Trvalý link: https://hdl.handle.net/11104/0337903