Associate Professor Kung-Cheng Ho, a researcher of the Base, has published a collaborative paper titled "Trust and price efficiency" in Journal of International Financial Markets, Institutions & Money.

JIFMIM is a peer-reviewed journal, which mainly publishes research on international trade, financing and investment.

Abstract: The relationship between societal trust and stock price delay is examined across 33 countries for the period from 1985 to 2021. The results showed that societal trust positively impacts investors' perception of information credibility, resulting in a shortened stock price delay. This effect is attributed to the role of societal trust as an informal institution. Further analysis indicated that the impact of societal trust is particularly pronounced in countries with more prevalent ownership by long-term institutional shareholders, more control of foreign shareholders from low trusting countries, laxer legal systems and disclosure requirements, and higher political risk. This study enhances the understanding of how societal trust shapes investors' information processing and emphasizes informal institutions role in promoting capital market efficiency.

Keywords: Trust  Stock price delay, Price efficiency, Perceived credibility

Link：https://doi.org/10.1016/j.intfin.2023.101855

Teacher profile

Kung-Cheng Ho, Doctor of Taiwan Yuanzhi University, associate professor of Guangdong University of Finance and Economics. His research interest covers Corporate finance, credit risk management, corporate social responsibility, information asymmetry risk and cross-disciplinary research. His research interest is in the Asia-Pacific Journal of Accounting & Economics, Corporate Governance: An International Review, Emerging Markets Review, Energy Economics, International Review of Economics & Finance, International Review of Financial Analysis, Journal of Accounting, Auditing and Finance, Journal of Business Research, Journal of Corporate Finance, Journal of Forecasting, Pacific-Baisn Finance Journal, Review of Quantitative Finance and Accounting and other international SSCI journals published more than 40 articles, including 1 ABS 4-star journals, 12 three-star journals and 17 SSCI first-region journals. In addition, he has preached papers in dozens of important academic conferences at home and abroad. Including China Annual Finance Conference, China Annual Financial Engineering Conference, China Annual Management Conference, CICF, American Accounting Association, Asian Finance Association, European Finance Association, Europe Financial Management Association, Financial Management Association, Taiwan Management Institute, Western Economic Association International, etc. In addition, he has reviewed manuscripts for more than 20 journals at home and abroad, including Asia Pacific Journal of Management, Corporate Governance: An International Review, Economic Modelling, Emerging Markets Finance and Trade, Financial Innovation, Investment Analysts Journal, International Journal of Emerging Markets, International Review of Economics and Finance,  Managerial and Decision Economics, etc.