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Journal of Business Ethics
Erschienen in: Journal of Business Ethics 3/2020

04.12.2018 | Original Paper

What Does It Mean When Managers Talk About Trust?

verfasst von: Wolfgang Breuer, Andreas Knetsch, Astrid Juliane Salzmann

Erschienen in: Journal of Business Ethics | Ausgabe 3/2020

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Abstract

This paper investigates whether managerial rhetoric in the Management Discussion and Analysis section of 10-K filings can help gauge the level of managerial opportunism in a firm. We find that the use of trust-related words is connected to inefficient investment decisions and poor operating performance. Furthermore, firms making more frequent use of trust-related words are subject to less monitoring by institutional investors or analysts. Their accounting also relies more heavily on discretionary accruals. These results are consistent with the notion that managerial rhetoric to advertise trustworthiness points towards agency problems plaguing the firm.
Vorheriger Artikel Ethical Leadership and Knowledge Hiding: A Moderated Mediation Model of Psychological Safety and Mastery Climate
Nächster Artikel How Perpetrator Gender Influences Reactions to Premeditated Versus Impulsive Unethical Behavior: A Role Congruity Approach

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Metadaten
Titel
What Does It Mean When Managers Talk About Trust?
verfasst von
Wolfgang Breuer
Andreas Knetsch
Astrid Juliane Salzmann
Publikationsdatum
04.12.2018
Verlag
Springer Netherlands
Erschienen in
Journal of Business Ethics / Ausgabe 3/2020
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI
https://doi.org/10.1007/s10551-018-4072-2

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