Lesmeister, Simon; Limbach, Peter; Goergen, Marc - 2022 - [Vers. 06/2022]
We show that in countries with more societal trust shareholders cast fewer votes at shareholder meetings and are more … performance in high-trust countries, suggesting that managers do not exploit greater discretion when trust is high. We also find a … negative relation between trust and bond spreads. Our evidence supports theory arguing that trust substitutes for monitoring …