Social Trust Towards Risk in International Business: A Cross-Country Analysis

Namporn Thanetsunthorn, Rattaphon Wuthisatian

Research output: Contribution to journalArticlepeer-review

Abstract

There is a growing body of research on social trust in the literature in business and economics. This study adopts the conceptual and empirical relationship between trust behaviour and risk-taking propensity, and further extends the frontier of research on social trust by examining whether social trust can influence country risk in international business settings. Using a panel data set consisting of developing and developed countries over the period 1995–2019, the study performs a battery of empirical tests, and finds robust evidence that developing countries with a higher level of social trust appear to display a greater degree of financial uncertainty. The findings are consistent with recent experimental studies documenting a significant positive association between trust and risk-taking behaviour. The study provides new insights into the role of social trust in country risk assessment, and offers meaningful implications for international business.

Original languageEnglish (US)
JournalGlobal Business Review
DOIs
StateAccepted/In press - 2022

All Science Journal Classification (ASJC) codes

  • Business and International Management

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