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By Wang J. F.

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Exclusion may also be based upon class commonalities or those of gender. Relational governance thus divides business communities among trusted insiders and outsiders who are not trusted. ”26 High levels of relational trust within a group can perversely lower the level of overall societal trust. Affective relational trust thus has a racist, sexist and generally xenophobic consequence. ”27 In the place of bearing high transaction costs associated with the investigation of outsiders, investors may simply rely on the heuristic of trusting insiders.

Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer, & Robert W. Vishny, Legal Determinants of External Finance, 52 J. FIN. 1131 (1997). Jonathan Baron & Ilana Ritov, Intuitions About Penalties and Compensation in the Context of Tort Law, 7 J. RISK & UNCERTAINTY 17, 32 (1993). See World Bank, WORLD DEVELOPMENT REPORT 2002: BUILDING INSTITUTIONS FOR MARKETS 123 (2002). See Friedrich Schneider & Dominik Enste, Shadow Economies: Size, Causes, and Consequences, 38 J. ECON LIT. 77 (2000).

Rousseau & Paul Wachtel, Financial Intermediation and Economic Performance: Historical Evidence from Five Industrialized Countries, 30 J. MONEY, CREDIT & BANKING 657 (1998). G. Rajan & Luigi Zingales, Financial Dependence and Growth, 88 AM. ECON. REV. 559 (1998). See Rob Bauer, Nadja Guenster, & Roger Otten, Empirical Evidence on Corporate Governance in Europe: The Effect on Stock Returns, Firm Value and Performance (October 23, 2003). See Bernard Black, Does Corporate Governance Matter? A Crude Test Using Russian Data, 149 U.

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Berry-Esseen Theorem and a Law of the Iterated Logarithm for Asymptotically Negatively Associated Sequences by Wang J. F.


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