Trust and managerial ability: Evidence from textual analysis
This paper investigates the relationship between trust and managerial ability. We use Audi’s (2016) Trust measure based on textual analysis. Also we use demerjian’s(2012) model to examine managerial ability. The result of our main regressions indicates a positive relation between current level of trust and managerial ability, while current managerial ability is associated with trust too. Also, our results show that managerial ability effect on trust is much stronger than trust effect on managerial ability
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