societal trust is negatively associated with tax avoidance, even after controlling for other institutional determinants such as … home country legal institutions and tax system characteristics. We explore the effects of two country-level institutional … characteristics — strength of legal institutions and capital market pressure — on the relation between societal trust and tax …

competitive interactions between banks and non-bank lenders (fintech firms). Trust enables lenders to have assured access to … financing, whereas a loss of investor trust makes this access conditional on market conditions and lender reputation. Banks … endogenously have stronger incentives to maintain trust. When borrower defaults erode trust in lenders, banks are able to survive …

We set up a simple theoretical model in which banks with varying degrees of government support are matched with CEOs … offered by banks in their profit-maximizing contracts. This yields a sequence of hypotheses: banks with more government … to an assortative matching between overconfident managers and banks with a larger bailout probability. We then test the …