FINANCIAL IMPACT OF TRUST AND INSTITUTIONAL QUALITY AROUND THE WORLD
FINANCIAL IMPACT OF TRUST AND INSTITUTIONAL QUALITY AROUND THE WORLD
| Author(s): | prof. Ing. Evžen Kočenda Ph.D., DSc., Svatopluk Kapounek, Luděk Kouba |
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| Type: | IES Working Papers |
| Year: | 2022 |
| Number: | 28 |
| ISSN / ISBN: | |
| Published in: | IES Working Papers 28/2022 |
| Publishing place: | Prague |
| Keywords: | social capital, social trust, institutional trust, uncertainty, crowdfunding, financial markets |
| JEL codes: | A13, D23, G41, K11 |
| Suggested Citation: | Kapounek S., Kočenda E., Kouba L. (2022): "Financial Impact of Trust and Institutional Quality around the World" IES Working Papers 28/2022. IES FSV. Charles University. |
| Abstract: | 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. |
| Downloadable: | wp_2022_28_kapounek, kocenda, kouba.pdf |
