The impact of mergers on credit union service provision

Fried, Harold O.; Lovell, C. A. Knox; Yaisawarng, Suthathip

doi:10.1016/s0378-4266(98)00090-9

Cited by 109 publications

(97 citation statements)

References 13 publications

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“…This indicates that mergers experience efficiency declines over periods of up to two years following a merger, and become relatively efficient as time passes. The former findings are in contrast to the findings of Fried et al (1999) regarding U.S. credit unions. Such differences may be caused by different adjustment speeds between Japan and the U.S.…”

Section: Empirical Results Of Credit Association Mergerscontrasting

confidence: 93%

“…58 A study of Australian credit unions found that acquired credit unions are less efficient than acquiring credit unions (Worthington, 2004). A study of U.S. credit unions, in contrast, found the exact opposite result (Fried et al, 1999).…”

Section: Empirical Results Of Credit Association Mergersmentioning

confidence: 95%

“…A study of U.K. building societies found significant efficiency gains following acquisitions (Haynes and Thompson, 1999). A U.S. study of credit unions similarly found that mergers resulted in improved efficiency, whereas roughly half of acquiring credit unions and roughly 20% of acquired credit unions experienced a decline in efficiency after a merger (Fried et al, 1999) Similarly, another study of Australian credit unions revealed that some mergers do produce efficiency benefits (Ralston et al, 2001;Worthington, 1999Worthington, , 2001. In contrast, a study of Japanese credit associations found that the cost efficiency of consolidated institutions was significantly lower than that of non-consolidated institutions shortly after the merger, while the cost efficiency of consolidated institutions improves over time (Yamori and Harimaya, 2008).…”

Section: Introductionmentioning

confidence: 99%

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Managerial ownership, capital structure and firm value

Ruan¹,

Tian²,

Ma³

2009

COC

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This paper extends prior research to examine the managerial ownership influences on firm performance through the choices of capital structures by using a new sample of S&P 500 firm in 2005. The empirical results of OLS regressions replicate the nonlinear relationship between managerial ownership and firm value. However, we found that the turning points had moved up in our sample compared with previous papers, which implies that the managerial control for pursuing self-interest, and the alignment of interests between managers and other shareholders can only be achieved now by management holding more ownership in a firm than that found in the previous studies. Managerial ownership also drives the capital structure as a nonlinear shape, but with a direction opposite to the shape of firm value. The results of simultaneous regressions suggest that managerial ownership affects capital structure, which in turn affects firm value. Capital structure is endogenously determined by both firm value and managerial ownership; while managerial ownership is not endogenously determined by the other two variables. As a part of good tradition we have focused on a wide international representation of contributions. We have contributions made by authors from many countries of the world both developed and developing. These are papers by authors from Japan, the USA, Spain, Australia, Taiwan, Qatar, Brazil, Denmark.In this issue we were fortunate in composing a section devoted to corporate governance in a particular region with application to Japan. This is the first time for our journal to publish the special section on corporate governance in Japan. This is a result of efforts undertaken by us to get and develop very good and future-oriented relationships with corporate governance experts from Japan. I think you will enjoy reading the papers on corporate governance in Japan.In this issue of the journal we came back to the traditional issue of corporate governance -ownership structure as a special section. Major attention is paid to the link between ownership structure and performance. Our contributors were fortunate in generating new ideas and made new findings in this way.Our strategic purpose is to develop the new concepts and practices how to overcome the financial crisis with the corporate governance toolkit including mechanisms, instruments and participants. SECTION 1. ACADEMIC INVESTIGATIONS AND CONCEPTS CORPORATE GOVERNANCE AND FINANCIAL CONTRACTING: BONDHOLDER TAKEOVER DEFENSES IN POISON PUTS 9Ai-Fen Cheng, Tao-Hsien Dolly KingBondholder governance through the use of bond covenants and the interactions between shareholder and bondholder governance mechanisms has been recently highlighted in the corporate governance literature. In this paper, we study bondholder governance mechanisms through takeover-related bond covenants (i.e., poison puts), confirm with agency theory on the characteristics of firms that are more likely to use these covenants, and emphasize the importance of bondholder governance in the overall struc...

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Section: Empirical Results Of Credit Association Mergerscontrasting

confidence: 93%

Section: Empirical Results Of Credit Association Mergersmentioning

confidence: 95%

Section: Introductionmentioning

confidence: 99%

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Managerial ownership, capital structure and firm value

Ruan¹,

Tian²,

Ma³

2009

COC

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“…54 This is a view supported by Fried et al, who argue that mergers were beneficial to credit unions. 55 Hence, it seems clear that the statutory amendment to the common bond assisted the development of credit unions in the USA because there was a reduction in the number of credit union failures, an increase in peoples' confidence in the movement, and a significant increase in membership. As outlined above, the NCUSIF has assisted the development of credit unions in the USA because it provides protection for members of insolvent credit unions and maintains a high level of consumer protection.…”

Section: The Usamentioning

confidence: 99%

The Credit Crunch – Are credit unions able to ride out the storm?

Ryder

Chambers²

2009

J Bank Regul

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“…Researchers have handled this problem either by linearly aggregating all types of outputs into a single bundle (e.g., Fried et al, 1999;Wilson, 2011, 2013) or by replacing zero outputs with an arbitrarily chosen small positive number (Frame et al, 2003). The presence of zero-value observations is however likely to be informative and may indicate significant differences among credit unions in terms of the service menu they offer to members.…”

Section: Introductionmentioning

confidence: 99%

Varying coefficient panel data model in the presence of endogenous selectivity and fixed effects

Malikov

Kumbhakar

Sun

2016

Journal of Econometrics

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This paper considers a flexible panel data sample selection model in which (i) the outcome equation is permitted to take a semiparametric, varying coefficient form to capture potential parameter heterogeneity in the relationship of interest, (ii) both the outcome and (parametric) selection equations contain unobserved fixed effects and (iii) selection is generalized to a polychotomous case. We propose a two-stage estimator. Given consistent parameter estimates from the selection equation obtained in the first stage, we estimate the semiparametric outcome equation using data for the observed individuals whose likelihood of being selected into the sample stays approximately the same over time. The selection bias term is then "asymptotically" removed from the equation along with fixed effects using kernel-based weights. The proposed estimator is consistent and asymptotically normal. We first investigate the finite sample properties of the estimator in a small Monte Carlo study and then apply it to study production technologies of U.S. retail credit unions from 2002 to 2006.

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The impact of mergers on credit union service provision

Cited by 109 publications

References 13 publications

Managerial ownership, capital structure and firm value

Managerial ownership, capital structure and firm value

The Credit Crunch – Are credit unions able to ride out the storm?

Varying coefficient panel data model in the presence of endogenous selectivity and fixed effects

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