Trust is crucial for the success of interorganizational relationships, yet we lack a clear understanding of when trust-based governance is likely to succeed or fail. This paper explores that topic via a closed-form and a computational analysis of a formal model based on the well-known trust...

This paper builds upon the idea that CEO overconfidence is endogenously generated in the corporate context. We provide evidence that managerial overconfidence is enhanced by contextual circumstances such as: past experience of the CEO, power allocation, quality of corporate governance and...

We develop an integrated set of propositions describing the relationships among CEO characteristics, the perceived trustworthiness of the CEO, and the board of directors’ decisions concerning the governance structure of the firm. In particular, we propose that CEO education, tenure,...