NEGOTIATED BLOCK TRADE AND REBUILDING OF TRUST
用动态模型研究公司治理如何影响客户信任，发现控制权市场行为与产品质量挂钩，控制权变更可修复信任并提升股东价值。
Abstract We investigate the impact of corporate governance on customers' trust using a dynamic model of experience‐goods firm. In the optimal equilibrium, customers' trust in the firm is linked to its behavior in the market for corporate control, so that the controlling shareholder has incentives to ensure high product quality while noncontrolling shareholders' interests are protected. Following a trust‐damaging event, turnover of the controlling share block restores customers' trust and enhances total shareholder value. Our analysis identifies an endogenous cost of corporate control, offers implications for the control premium, and provides a novel rationale for the separation of ownership and control.