Gür, NurullahBjornskov, Christian10.07.20192019-07-1010.07.20192019-07-102017Gür, N. ve Bjornskov, C. (2017). Trust and delegation: Theory and evidence. Journal of Comparative Economics, 45(3), 644-657. https://dx.doi.org/10.1016/j.jce.2016.02.0020147-59671095-7227https://dx.doi.org/10.1016/j.jce.2016.02.002https://hdl.handle.net/20.500.12511/3045WOS: 000411771000012Social trust is associated with good economic performance, but little is known about the transmission mechanisms connecting trust and performance. We explore the effect of trust on delegation decisions. In a theoretical framework, we note that delegation is a low-cost option when management decisions can be implemented without monitoring. This option is, however, risky and more likely to be profitable in higher-trust environments. In a set of cross-country regressions, we show a strong association between trust and delegation, which is increasing in of sophistication. Journal of Comparative Economics 45 (2017) 644-657. School of Business and Management Sciences, Istanbul Medipol University, Kavacik Mahallesi Ekinciler Caddesi No. 19, 34810 Beykoz-Istanbul, Turkey; Department of Economics and Business, Aarhus University, Fuglesangs Alle 5, DK-8200 Aarhus V, Denmark.eninfo:eu-repo/semantics/embargoedAccessSocial TrustEconomic DevelopmentDelegationArticle45364465710.1016/j.jce.2016.02.002Q2Q2