This paper examines how social relations and norms contribute to the emergence of generalized trust in economic action. Our core proposition is that the more positive the local social exchange relationship, the greater an actor’s propensity to place trust in strangers. Our research design...

China’s banking sector is dominated by four distinct organizational forms: policy banks (PBs), state-owned commercial banks (SOCBs), joint stock commercial banks (JSCBs), and rural credit cooperatives (RCCs). Economic analyses have especially focused on the development of bank efficiency and...

In this study we use a dataset that provides information on Chinese Communist Party grassroots organizations' political control over decision-making in China's listed firms. Specifically, we examine how different types of shareholders affect (1) the party's level of decision-making power and (2)...