Trust, Transparency, and Complexity

IF 6.8 1区经济学 Q1 BUSINESS, FINANCE

Review of Financial Studies Pub Date : 2023-01-30 DOI:10.1093/rfs/hhad011

Richard T Thakor, Robert C Merton

引用次数: 0

Abstract

Abstract This paper develops a theory that generates an equilibrium relationship between product complexity, transparency, and trust in firms. Complexity, transparency, and the evolution of trust are all endogenous, and equilibrium transparency is nonmonotonic. The least-trusted firms choose the lowest product complexity, remain opaque, and substitute ex ante third-party verification for information disclosure and trust. Firms with an intermediate level of trust choose an intermediate level of complexity and transparency through disclosure, with more trusted firms choosing greater complexity and lower transparency. The most-trusted firms choose maximum complexity while remaining opaque, eschewing both verification and disclosure.

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信任、透明度和复杂性

摘要本文发展了一个理论，在产品复杂性、透明度和企业信任之间产生了均衡关系。复杂性、透明度和信任的演化都是内生的，均衡透明度是非单调的。最不受信任的公司选择最低的产品复杂性，保持不透明，并以事先第三方验证代替信息披露和信任。具有中等信任水平的企业通过披露选择中等程度的复杂性和透明度，具有较高信任水平的企业选择较高的复杂性和较低的透明度。最受信任的公司选择最大程度的复杂性，同时保持不透明，避免核实和披露。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Financial Studies Multiple-

CiteScore

16.00

自引率

2.40%

发文量

期刊介绍： The Review of Financial Studies is a prominent platform that aims to foster and widely distribute noteworthy research in financial economics. With an expansive editorial board, the Review strives to maintain a balance between theoretical and empirical contributions. The primary focus of paper selection is based on the quality and significance of the research to the field of finance, rather than its level of technical complexity. The scope of finance within the Review encompasses its intersection with economics. Sponsoring The Society for Financial Studies, the Review and the Society appoint editors and officers through limited terms.