AI Summary of Scholarly Research

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Three mechanisms can repair trust in regulation

Research area:economics-policy

What the study found

The study finds that trust in regulation can be repaired even after severe breakdowns. In the case of European financial regulation, the authors report that recovery was associated with three mechanisms working together: public investigations, reforms, and greater transparency.

Why the authors say this matters

The authors say this matters because trust is a cornerstone of regulatory governance, yet there has been little evidence on how trust can be repaired after it is damaged. The study suggests that understanding trust repair may help explain recovery after regulatory crises.

What the researchers tested

The researchers developed a general analytical framework for regulatory trust repair, drawing on insights from management scholarship and adapting them to regulation. They then tested the framework in European financial regulation using deductive theory-testing process tracing, a method that examines how a proposed explanation fits a case over time.

What worked and what didn't

The analysis suggests that public investigations that diagnose failure, substantive and institutional reforms that reduce the risk of recurrence, and heightened transparency that demonstrates renewed trustworthiness can together be sufficient to repair trust. The abstract does not report alternative combinations that failed, only that this three-part pattern was linked to recovery in the case studied.

What to keep in mind

The abstract describes one case: European financial regulation. It also presents the framework as systematically tested in that setting, but it does not provide detailed limitations or discuss whether the findings apply equally to other regulatory contexts.

Key points

  • The study says trust in regulation can be repaired after major breakdowns.
  • It identifies three mechanisms linked to recovery: public investigations, reforms, and transparency.
  • The case study is European financial regulation, despite the severity of the financial and eurozone crises.
  • The authors developed a general framework for regulatory trust repair from management scholarship.
  • The analysis used deductive theory-testing process tracing.

Disclosure

Research title:
Three mechanisms can repair trust in regulation
Authors:
Bernardo Rangoni
Institutions:
European University Institute, School of International Relations, University of Antwerp
Publication date:
2026-06-29
OpenAlex record:
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AI provenance: This post was generated by gpt-5.4-mini (OpenAI). The original authors did not write or review this post.