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We provide a new explanation to the limited stock market participation puzzle. In deciding whether to buy stocks, investors factor in the risk of being cheated. The perception of this risk is a function not only of the objective characteristics of the stock, but also of the subjective...
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We investigate the effects of both trust and sociability for stock market participation, the role of which has been …, Ageing and Retirement in Europe supplemented with regional information on generalized trust from the World Value Survey and … on specific trust to financial institutions from Eurobarometer. We show that trust and sociability have distinct and …
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I measure the value that investors place on trust and relationships in asset management by examining mutual fund flows … responsive to ownership changes, providing new evidence that such investors place a significant value on trust and are more …
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This paper shows that trust-building characteristics of fund managers affect purchase decisions of mutual fund …
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