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This is a study of variations in trust relations according to institutional setting. A wide body of comparative institutional literature within economics and finance engages with trust. However, as most comparative institutional literature uses macro-level data and/or stylistic ideal types, it normally neglects intra-firm trust.
This paper redresses this lacuna by using both macro-level data and comparative firm-level evidence. We found that both country trust and firm-level trust have a positive impact on performance, and that they act as substitutes for each other. Both employee rights and investor rights are negatively correlated with country trust.