Abstract
ABSTRACT This study examines the effects of leadership on employee trust in leaders using a longitudinal dataset of 396 US federal subagencies from 2006 to 2015. Through an instrumental variable approach, this study addresses the endogeneity problem of transactional and transformational leadership, which has largely overlooked in previous research. The results indicate that when the endogeneity of leadership is taken into account, only transactional leadership has a statistically significant and positive impact on employee trust in leaders while transformational leadership does not show a statistically significant impact. The study offers important implications for practitioners and suggestions for future research.
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