The Formation of Stakeholders' Trust in Regulatory Agencies: The Relationship Between Contact Frequency, Media Coverage, and Stakeholder Trust in Regulatory Agencies

ABSTRACT This article investigates the formation of stakeholders' trust in regulatory agencies, as the extent to which contact frequency and sentiment of media coverage are related to different types of stakeholders' trust. Based upon original survey data from diverse stakeholders, and media coverage from 2015 to 2020 of agencies in the food safety, financial regulation, and data protection sectors across seven countries, the analysis suggests that media coverage rather than contact frequency is important for stakeholders' formation of trust. Negative media coverage is detrimental to stakeholders' trust; positive or neutral coverage is conducive to stakeholders' trust. Finally, the results indicate that contact frequency does not seem to strengthen or weaken the importance of media coverage for stakeholders' trust in regulatory agencies significantly. This suggests the relative importance of media coverage compared to direct contact and experience with regulatory agencies when understanding determinants of stakeholders' trust formation. Beyond contributing to the research on regulatory governance, this study offers valuable insights for regulatory agencies in terms of navigating and leveraging the media.