Publicação
Relationship between trust and financial market development
| Resumo: | Trust plays an important role in the development of financial markets; it influences investment behaviours and market stability. Nonetheless, lack of trust in the financial sector is one of the factors that lead to 2008 global financial. This dissertation analyses the relationship between Trust and Financial Market Development in 20 European Countries between 2007 and 2016. OLS and Fixed Effects (FE) models are estimated for this purposed. The results of this study, when analysing the two regressions, showed no positive statistically significant relationship between Trust in Government, a proxy for Institutional Trust, and Financial Market Development, the same was shown between Trustworthiness and Confidence, a proxy for Generalized Trust, and Financial Market Development. This highlights the need for a deeper study of this topic, especially between stable and unstable financial ecosystems. |
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| Autores principais: | Marcelino, Afonso Lopes Sequeira |
| Assunto: | Trust Institutional Trust Trust in Government Trustworthiness and Confidence Financial Market Development Panel Data Analysis Confiança Confiança Institucional Confiança no Governo Confiabilidade e Confiança Desenvolvimento dos Mercados Financeiros Análise de Dados de Painel |
| Ano: | 2023 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| Resumo: | Trust plays an important role in the development of financial markets; it influences investment behaviours and market stability. Nonetheless, lack of trust in the financial sector is one of the factors that lead to 2008 global financial. This dissertation analyses the relationship between Trust and Financial Market Development in 20 European Countries between 2007 and 2016. OLS and Fixed Effects (FE) models are estimated for this purposed. The results of this study, when analysing the two regressions, showed no positive statistically significant relationship between Trust in Government, a proxy for Institutional Trust, and Financial Market Development, the same was shown between Trustworthiness and Confidence, a proxy for Generalized Trust, and Financial Market Development. This highlights the need for a deeper study of this topic, especially between stable and unstable financial ecosystems. |
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