IDEAS home Printed from https://ideas.repec.org/p/mpg/wpaper/2020_19.html
   My bibliography  Save this paper

Trustworthiness in the Financial Industry (A revised version with the new title "Social Preferences of Young Professionals and the Financial Industry" is forthcoming with Management Science in 2022.)

Author

Listed:
  • Andrej Gill
  • Matthias Heinz
  • Heiner Schumacher
  • Matthias Sutter

    (Max Planck Institute for Research on Collective Goods, Bonn)

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.

Suggested Citation

  • Andrej Gill & Matthias Heinz & Heiner Schumacher & Matthias Sutter, 2020. "Trustworthiness in the Financial Industry (A revised version with the new title "Social Preferences of Young Professionals and the Financial Industry" is forthcoming with Management Science ," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2020_19, Max Planck Institute for Research on Collective Goods.
    • Handle: RePEc:mpg:wpaper:2020_19
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Trustworthiness; Financial Industry; Selection; Social Preferences; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mpg:wpaper:2020_19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marc Martin (email available below). General contact details of provider: https://edirc.repec.org/data/mppggde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.