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trustworthiness is not associated with a firm's actual credit rating, bankruptcy score, debt covenant violations, financial report …
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. Collectively, our results suggest that perceived firm trustworthiness from the stakeholders conveys valuable credit quality …
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We examine the contractual implications of lender trust in bank loan contracts. We measure a lender's trust using the average trust attitudes in the ancestral country of origin of its CEO. We find that banks with trusting CEOs charge lower loan rates. Furthermore, trusting lenders sanction...
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