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Title: Modelling trust evolution within small business lending relationships
Authors: Tang, Ying
Moro, Andrea
Sozzo, Sandro
Li, Zhiyong
First Published: 1-Sep-2018
Publisher: SpringerOpen (part of Springer Nature), Southwestern University of Finance and Economics
Citation: Financial Innovation, 2018, 4:19
Abstract: Trust is a key dimension in the principal-agent relationship and it has been studied extensively. However, the dynamics, evolution, and intrinsic motivation and mechanisms have received less attention. This paper investigates the intrinsic motivation of trust and it proposes a theoretical model of trust evolution that is based on the notion of ‘trust response’ and ‘trust spiral’. We then specifically focus on trust within the lending relationship between banks and small businesses, and we run numerical simulations to further illustrate the evolution of involved mutual trust over time. Our model provides implications for future research in both trust evolution and small business lending relationships.
DOI Link: 10.1186/s40854-018-0105-1
ISSN: 2199-4730
Version: Publisher Version
Status: Peer-reviewed
Type: Journal Article
Rights: Copyright © the authors, 2018. This is an open-access article distributed under the terms of the Creative Commons Attribution License (, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Appears in Collections:Published Articles, School of Management

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