Trustworthiness in the Financial Industry

Andrej Gill (), Matthias Heinz (), Einer Schumacher () and Matthias Sutter

Working Papers from Faculty of Economics and Statistics, Universität Innsbruck

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; in; the; Financial; Industry (search for similar items in EconPapers)
JEL-codes: C91 G20 M51 (search for similar items in EconPapers)
Pages: 84 pages
Date: 2020
New Economics Papers: this item is included in nep-exp and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://www2.uibk.ac.at/downloads/c9821000/wpaper/2020-28.pdf A new version of this text will be published by Management Science in 2022 with a new title, "Social Preferences of Young Professionals and the Financial Industry. DOI: tba (application/pdf)

Related works:
Working Paper: Trustworthiness in the Financial Industry (2020)
Working Paper: Trustworthiness in the Financial Industry (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:inn:wpaper:2020-28

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