Modelling trust evolution within small business lending relationships
Ying Tang (),
Andrea Moro (),
Sandro Sozzo () and
Zhiyong Li ()
Additional contact information
Ying Tang: Southwestern University of Finance and Economics
Andrea Moro: Cranfield University
Sandro Sozzo: University of Leicester
Zhiyong Li: Southwestern University of Finance and Economics
Financial Innovation, 2018, vol. 4, issue 1, 1-18
Abstract:
Abstract Trust is a key dimension in the principal-agent relationship and it has been studied extensively. However, the dynamics, evolution, and intrinsic motivation and mechanisms have received less attention. This paper investigates the intrinsic motivation of trust and it proposes a theoretical model of trust evolution that is based on the notion of ‘trust response’ and ‘trust spiral’. We then specifically focus on trust within the lending relationship between banks and small businesses, and we run numerical simulations to further illustrate the evolution of involved mutual trust over time. Our model provides implications for future research in both trust evolution and small business lending relationships.
Keywords: Trust; Spiral; Small business lending; Reciprocity; Altruism (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)
Downloads: (external link)
http://link.springer.com/10.1186/s40854-018-0105-1 Abstract (text/html)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:spr:fininn:v:4:y:2018:i:1:d:10.1186_s40854-018-0105-1
Ordering information: This journal article can be ordered from
http://www.springer. ... nomics/journal/40589
DOI: 10.1186/s40854-018-0105-1
Access Statistics for this article
Financial Innovation is currently edited by J. Leon Zhao and Zongyi
More articles in Financial Innovation from Springer, Southwestern University of Finance and Economics
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().