...Steven F. Cahan; Chen Chen; Li Chen ABSTRACT How prior trust moderates investor responses to restatements is unknown. We examine how societal trust affects the changes in institutional investors’ shareholdings around a restatement. We consider two competing hypotheses based on the erosion of trust...

...Yuyan Guan; Gerald J. Lobo; Albert Tsang; Xiangang Xin ABSTRACT We investigate the relationship between societal trust and managers' decisions to voluntarily issue earnings forecasts. We reason that managers are more likely to issue earnings forecasts in high-trust countries than in low-trust...