The Impact of Organizational Trust on a Firm's Market Value. The Effects of Firm Size

• Autorzy: Anna Sankowska , Dariusz Siudak
• Języki publikacji: EN

Abstrakty

EN

The paper investigates the relationship between organizational trust and a firm's market value through the perspective of company size. The paper addresses the theoretical and empirical gap regarding the effects of organizational trust on a firm's value by embarking on stewardship and agency theories. This provides a theoretical framework to extend the understanding of an organizational trust's influence on a firm's market value based on company size considering the extent to which a firm's size plays a role in determining the market value effect. Furthermore, the effects of firm size on an organizational trust's impact on market value were tested empirically through a moderation analysis drawing on a sample of 198 firms listed on the Warsaw Stock Exchange. It has been found that there is no significant association between organizational trust climate and a firm's market value. However, what materialized from this investigation, as predicted, is that the aggregate impact of the internal trust climate on market value depends on company size. Specifically, it is reported that high trust diminishes the value of big firms, but at the same time contributes to a firm's value in the case of small firms. Although these results might seem surprising, they are supported by arguments derived from the stewardship and agency theories distinguishing the possible positive and negative outcomes of organizational trust under different conditions.(original abstract)

Słowa kluczowe

EN

Market value of enterprise; Enterprise size; Agency theory; Organizational trust; Financial performance; Economic performance

PL

Wartość rynkowa przedsiębiorstwa; Wielkość przedsiębiorstwa; Teoria agencji; Zaufanie organizacyjne; Wynik finansowy; Wyniki gospodarcze

• Czasopismo: Argumenta Oeconomica
• Rocznik: 2015
• Numer: nr 2 (35)
• Strony: 105--122

Twórcy

autor

Anna Sankowska

• Institute of Social Sciences and Management of Technologies, Lódź University of Technology

autor

Dariusz Siudak

• Institute of Social Sciences and Management of Technologies, Lódź University of Technology

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Identyfikatory

DOI

10.15611/aoe.2015.2.06