Trustworthiness in the Financial Industry

Matthias Heinz, Andrej Gill, Heiner Schumacher and Matthias Sutter

No 15147, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The financial industry has been struggling with widespread misconduct and public mistrust. Here we argue that the lack of trust into the financial industry may stem from the selection of subjects with little, if any, trustworthiness into the financial industry. We identify the social preferences of business and economics students, and follow up on their first job placements. We find that during college, students who want to start their career in the financial industry are substantially less trustworthy. Most importantly, actual job placements several years later confirm this association. The job market in the financial industry does not screen out less trustworthy subjects. If anything the opposite seems to be the case: Even among students who are highly motivated to work in finance after graduation, those who actually start their career in finance are significantly less trustworthy than those who work elsewhere.

Keywords: Trustworthiness; Financial industry; Selection; Social preferences; Experiment (search for similar items in EconPapers)
JEL-codes: C91 G20 M51 (search for similar items in EconPapers)
Date: 2020-08
New Economics Papers: this item is included in nep-cwa, nep-exp, nep-pay and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Trustworthiness in the Financial Industry (2020)
Working Paper: Trustworthiness in the Financial Industry (2020)
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