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A trust model of institutional investors’ behaviour

A trust model of institutional investors’ behaviour

Gao, Xiaowen ORCID: 0000-0002-6682-6193 (2014) A trust model of institutional investors’ behaviour. In: The 14th FRAP Perspectives Conference, ACRN Oxford Research Centre: Oxford, Sept. 22 - 24 2014, Oriel College of the University of Oxford Postcode: OX1 4EW. (Unpublished)

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We propose a trust model to capture interactions between institutional investors and their targeting firms and to explain institutional investors’ decision-making process. Drawing on works in inter-organizational relationship, we argue that an investment decision on long a stock or short a stock is determined by presumed rule-based trust at initial stage and by confirmed relationship-based situational trust at the final stage. The final stage dominates the decision making. Our model also describes the cycle of trust to reflect the dynamics of trust building in stock selection. We also explore other commonly recognised antecedents of inter-organizational trust such as social ties, time horizon, power and resource dependence in the setting of stock investment.

Item Type: Conference or Conference Paper (Paper)
Uncontrolled Keywords: investment decision-making, institutional investor, inter-organizational relationship, trust model
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Faculty / School / Research Centre / Research Group: Faculty of Business
Faculty of Business > Department of Accounting & Finance
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Last Modified: 18 Aug 2021 13:44

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