Social Trust and Corporate Misconduct: Evidence from China

We study whether greater social trust is associated with a lower incidence of corporate misconduct. Both social norm and network theory suggest that social trust can affect managerial behavior and reduce the likelihood of misconduct behavior. Consistent with this prediction, we find that social trus...

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Bibliographic Details
Authors: Dong, Wang (Author) ; Han, Hongling (Author) ; Ke, Yun (Author) ; Chan, Kam C. (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2018
In: Journal of business ethics
Year: 2018, Volume: 151, Issue: 2, Pages: 539-562
Further subjects:B social trust
B Corporate misconduct
B China
Online Access: Volltext (lizenzpflichtig)
Description
Summary:We study whether greater social trust is associated with a lower incidence of corporate misconduct. Both social norm and network theory suggest that social trust can affect managerial behavior and reduce the likelihood of misconduct behavior. Consistent with this prediction, we find that social trust is negatively associated with corporate misconduct behavior. Moreover, we show that, when media coverage is higher, the negative relation between social trust and corporate misconduct behavior is more pronounced. Further analyses suggest that social trust can help mitigate both disclosure-related and nondisclosure-related misconduct.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-016-3234-3