Trust in, Trust Out: A Real Cost of Sudden and Significant Financial Loss

23 Pages Posted: 6 Nov 2019

See all articles by Aaron Bruhn

Aaron Bruhn

Australian National University (ANU) - Research School of Finance, Actuarial Studies and Applied Statistics; Financial Research Network (FIRN)

Date Written: April 2019

Abstract

This study examines the loss of trust that occurs when individuals suffer from sudden and significant financial loss. We use a qualitative case study to show that individuals lose trust in a range of parties, including financial advisors, banks, credit providers, government and perhaps most damagingly of all, oneself. Such outcomes are concerning as all financial services are based on trust between various parties, and trust is important in making financial decisions. A lack of trust can lead to poorer individual and societal outcomes. It also suggests that trends to financial self‐sufficiency have risks, which impact well beyond monetary losses.

Keywords: Behavioural finance, Financial loss, Financial trauma, Personal finance, Trust

Suggested Citation

Bruhn, Aaron, Trust in, Trust Out: A Real Cost of Sudden and Significant Financial Loss (April 2019). Accounting & Finance, Vol. 59, pp. 359-381, 2019. Available at SSRN: https://ssrn.com/abstract=3369146 or http://dx.doi.org/10.1111/acfi.12345

Aaron Bruhn (Contact Author)

Australian National University (ANU) - Research School of Finance, Actuarial Studies and Applied Statistics ( email )

Kingsley Street
Canberra, ACT 2601
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

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