While confidence in the business sector is crucial for well-functioning markets, there is surprisingly little empirical work
on its sources. Available research recognizes generalized social trust and macroeconomic performance (especially unemployment
and economic growth) as major forces explaining confidence in institutions and organizations in general. By assuming that
confidence in companies hinges on rules, formal procedures, and practices that shape how organizations function, economic
regulation is frequently advocated to foster confidence in companies, not least as it is supposed to reduce the scope for
opportunistic behavior. Based on individual-level data from World Values Survey/European Values studies and economic regulation
data from the Economic Freedom of the World project we investigate statistical associations of confidence in major companies
with generalized social trust and macroeconomic performance as well as the intensity and quality of business regulation. From
an economic policy perspective our findings suggest that confidence in the business sector can be facilitated by an implicit
guarantee from governments of fair and impartial treatment.