David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
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Business Ethics Quarterly 11 (1):177-193 (2001)
Shareholders' relationship to the firm is a central theme in corporate governance, yet the investors' perspective has beenvirtually ignored in governance research. This paper attempts to explain the previously unexplored role of trust in the investordecision-making process. The proposed model suggests that trust acts as the antecedent of the risk variable in existing investordecision-making models. Stock ownership involves both financial and ethical risk, which by definition requires some level of implicit trust in management and the market
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