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Article
Publication date: 17 March 2020

Wenling Lu and Judith Swisher

The purpose of this research is to examine the growth rates of commercial banks and credit unions around the financial crisis and recovery. Credit unions are analyzed as a group…

Abstract

Purpose

The purpose of this research is to examine the growth rates of commercial banks and credit unions around the financial crisis and recovery. Credit unions are analyzed as a group and by field of membership. Specifically, this research analyzes the growth rates of assets, deposits, and loans.

Design/methodology/approach

This research employs univariate tests of differences to examine the median growth rates for commercial banks and credit unions. Unbalanced pool regressions analyze growth rates during the pre-crisis, crisis, and recovery periods, controlling for size, net charge-offs, and unemployment.

Findings

Univariate test results that control for size show that banks grow at faster rates than credit unions for most of the pre-crisis years. However, medium sized credit unions grow at faster rates for most of the crisis and recovery years. Results of unbalanced pool regressions suggest that, overall, credit unions grow at slower rates than do banks. However, during the crisis and recovery, credit union growth is significantly greater than that of banks, after controlling for net charge-offs, size, and unemployment. Credit union growth varies by field of membership type.

Originality/value

Although a large volume of research examines commercial bank performance around the financial crisis, only a few papers assess the performance of credit unions. And very few papers compare commercial banks and credit unions. This paper explores how the recent financial crisis influenced the growth of commercial banks and credit unions from 2005 to 2013.

Details

American Journal of Business, vol. 35 no. 1
Type: Research Article
ISSN: 1935-5181

Keywords

Article
Publication date: 25 November 2019

Wenling Lu and Wan-Jiun Paul Chiou

This study aims to examine the intertemporal changes in the institutional ownership of publicly traded bank holding companies (BHCs) in the USA. The role of owned-subsidiary…

Abstract

Purpose

This study aims to examine the intertemporal changes in the institutional ownership of publicly traded bank holding companies (BHCs) in the USA. The role of owned-subsidiary investing in the portfolio decisions is investigated as compared to unaffiliated banks and non-bank institutional investors.

Design/methodology/approach

The authors apply panel regressions that control bank-fixed and time-fixed effects to study the impact of prudence, liquidity, information advantages and historical returns on each type of the institutional ownership from 1986 to 2014.

Findings

The subsidiary banks tend to invest in more shares of their parent BHCs when they are traded for a short period of time and when they have low-market risk, low turnover, a low capital equity ratio and great reliance on off-balance activities. However, the impact of these determinants of institutional ownership is opposite for unaffiliated banks and non-bank institutions.

Research limitations/implications

This study provides evidence that the criteria used by subsidiary banks to invest in their parent company stock are different than the unaffiliated banks and non-bank institutions, raising concerns about the owned-subsidiary investing activities and banks’ trustees’ duty to work in the best interest of their trust clients.

Originality/value

This paper provides a comprehensive analysis of the level and market value of BHC institutional ownership over the past three decades and the impact of different determinants on the ownership of BHCs by subsidiary banks, unaffiliated banks and non-bank institutional investors.

Details

Journal of Financial Economic Policy, vol. 12 no. 3
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 1 August 2016

Wenling Lu and David A. Whidbee

This paper aims to examine the characteristics of banks that were the target of intervention in the form of bailout or failure during the financial crisis and, of those subjected…

Abstract

Purpose

This paper aims to examine the characteristics of banks that were the target of intervention in the form of bailout or failure during the financial crisis and, of those subjected to intervention, what characteristics distinguish those that received bailout funds from those that were deemed failures.

Design/methodology/approach

The study estimates a series of logit regressions in an effort to identify the causes of regulatory intervention while controlling for bank-level characteristics and the economic and regulatory environment.

Findings

The empirical results indicate that many of the same characteristics associated with banks receiving bailout funds are similar to the characteristics associated with failed banks. However, non-performing loans increased the likelihood of failure, but reduced the likelihood of a bank receiving Capital Purchase Program (CPP) funds, suggesting that regulatory authorities discriminated in their use of CPP funds based on the quality of a bank’s asset portfolio. Further, those banks located in states with limits on de novo branching and those banks that are part of a multi-bank holding company structure were less likely to fail but were more likely to receive CPP funds.

Originality/value

This paper provides a comprehensive analysis of regulatory intervention in the banking industry during the late 2000s financial crisis and the impact of different banking organizational structures, economic circumstances, and financial fragility on the likelihood of a bank failing or receiving bailout funds.

Details

Journal of Financial Economic Policy, vol. 8 no. 3
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 3 August 2015

Kangbok Lee and Wenling Lu

– The purpose of this paper is to examine the impact of bank regulation and supervision on bank development, efficiency and fragility over the period of 1999-2011.

1100

Abstract

Purpose

The purpose of this paper is to examine the impact of bank regulation and supervision on bank development, efficiency and fragility over the period of 1999-2011.

Design/methodology/approach

The authors’ approach is based on a multivariate difference-in-difference model which controls for potential endogeneity of the explanatory variables and unobservable country-specific effect. The paper investigates the changes of bank outcomes and a country’s regulation and supervisory practices, in terms of capital regulation, supervisory power, private monitoring, entry into banking requirements, overall restrictions on bank activities and government ownership of banks in a sample of 53 countries with a total of 482 observations.

Findings

Empirical results indicate that greater capital regulatory requirements reduce bank fragility, as measured by lower levels of non-performing loans but reduce bank efficiency, as measured by higher levels of net interest margin; supervisory practices that strengthen private sector monitoring of banks improve bank development, as measured by bank private credit as a share of gross domestic product; lower levels of non-performing loans are associated with greater enter-into-banking requirements and less restrictiveness on bank activities; and greater government ownership of banks is associated with both higher levels of net interest margin and higher levels of non-performing loans. Overall, the findings support Basel II’s first and third pillars: capital requirements and private monitoring.

Originality/value

This cross-country analysis provides evidence on which specific regulatory and supervisory practices work best in light of what was learned from the recent financial crisis.

Details

Journal of Financial Economic Policy, vol. 7 no. 3
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 26 July 2013

Wenling Lu and David A. Whidbee

This paper aims to examine the impact of charter type (national vs state), holding company structure, and measures of bank fragility on the likelihood of bank failure during the…

3133

Abstract

Purpose

This paper aims to examine the impact of charter type (national vs state), holding company structure, and measures of bank fragility on the likelihood of bank failure during the late 2000s financial crisis.

Design/methodology/approach

The study estimates a series of logit regressions in an effort to identify the causes of failure and assess the role of the bank‐level characteristics while controlling for the economic and regulatory environment.

Findings

The empirical results indicate that established institutions were more likely to fail, dependent upon whether a bank received bailout funds or not, if they were relatively large, had relatively low capital ratios, had relatively low liquidity, relied more heavily on brokered deposits, held a relatively large portfolio of real estate loans, had a relatively large proportion of non performing loans, and had less income diversity. Consistent with being financially fragile, de novo banks and those banks that grew substantially prior to the crisis faced an increased likelihood of failure relative to established banks. However, capital levels were not significantly related to the likelihood of failure in de novo institutions.

Originality/value

This paper provides a comprehensive analysis of the possible business models' impact on the likelihood of failure during the recent financial crisis. It contributes to the ongoing debate regarding appropriate regulatory reform in the banking industry by shedding light on the extent to which the business model decisions made by bank managers have an impact on the stability of the banking system.

Details

Journal of Financial Economic Policy, vol. 5 no. 3
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 8 February 2022

Yuan George Shan, Joey Wenling Yang, Junru Zhang and Millicent Chang

This study aims to examine the mediating role played by corporate governance (CG) in the relationship between corporate social responsibility (CSR) and analyst forecast quality.

Abstract

Purpose

This study aims to examine the mediating role played by corporate governance (CG) in the relationship between corporate social responsibility (CSR) and analyst forecast quality.

Design/methodology/approach

The authors raise three specific questions: Does CG play a mediating role in the relationship between CSR and analyst forecast quality? If so, is such mediation effect of CG reduced for firms with weak governance? Do firms with superior CSR performance experience higher analyst forecast quality through the mediation effect of CG?

Findings

The present results suggest that CG serves as a partial mediator that facilitates CSR’s positive influence on analyst forecast quality. However, further analyses show that in firms with a low governance score, CG does not have a mediation effect. Conversely, the authors find that firms with superior CSR performance have higher forecast quality through the mediation effect of CG. The authors also find that the mediation effect of CG is more pronounced for the environmental component than for the social component of CSR.

Originality/value

To the best of the authors’ knowledge, this study is the first to investigate the role of CG as a mediator between CSR and analyst forecast quality and to reveal that the strength of this effect varies depending on firms’ CG level and CSR commitment.

Article
Publication date: 11 May 2022

Lele Fan, Xing Zhou, Jing Ren, Jianfeng Ma, Yang Yang and Wenling Shao

Drawing from self-regulation theories, this study aims to present a model linking customer mistreatment to hotel employees’ displaced workplace deviance via self-regulatory…

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Abstract

Purpose

Drawing from self-regulation theories, this study aims to present a model linking customer mistreatment to hotel employees’ displaced workplace deviance via self-regulatory depletion, with disposition-based mindfulness as a first‐stage moderator.

Design/methodology/approach

The authors conducted a multisource, multiwave investigation with 245 focal–coworker dyads at 14 full-service hotels in southern China. Descriptive statistics, confirmatory factor analysis and regression analysis were performed.

Findings

The results demonstrated the mediating role of self-regulatory depletion in provoking hotel employees’ displaced deviant reactions to customer mistreatment. Additionally, employees with high trait mindfulness are less vulnerable to self-regulatory depletion and, thus, less likely to exhibit displaced workplace deviance.

Practical implications

This study enables hospitality administrators to understand that organizations and their employees, whether directly mistreated by customers, are potential victims of such negative events. Hospitality organizations should enhance mindfulness-based interventions and provide more humane care for employees to maintain their self-regulatory abilities, thereby reducing displaced workplace deviance.

Originality/value

First, in contrast to studies focusing primarily on internal factors that trigger employees’ deviant responses, the research suggests that mistreatment by external customers is a potentially meaningful yet largely unexamined antecedent of workplace deviance. Second, this study moves beyond “self-gain” explanations, suggesting that employees display deviance not because of a malicious intent to harm the organization or its members but because they are incapable of controlling their undesirable behaviors. Third, the research highlights how mindfulness mitigates customer mistreatment and displaced workplace deviance relationships.

Details

International Journal of Contemporary Hospitality Management, vol. 34 no. 7
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 22 February 2013

Shulin Gu

This work aims to address source and dynamics of institutional change. It seeks to develop analytic tools by adaptation of Schumpeterian notion on entrepreneurship, Nelson's work…

Abstract

Purpose

This work aims to address source and dynamics of institutional change. It seeks to develop analytic tools by adaptation of Schumpeterian notion on entrepreneurship, Nelson's work on basic institutions and specific institutions, and Nonaka's middle‐up‐down framework of knowledge management in contrast to top‐down process. Pragmatically it attempts to understand how to improve policy capacity that challenges China seriously.

Design/methodology/approach

The work adopts a detailed case study method. A paired case is chosen with the criteria that they have widespread impact in China, and are representative of general and specific institutional change, respectively. Data came from mixed sources: field work and publications. Comparison of the paired cases identifies similarities and differences of different institutional change.

Findings

Similarities in the cases are in the important role of institutional entrepreneurs, crucial necessity of field experimentation, and regulatory and legislative means of knowledge processing. Differences are that centralized “top‐down” process of knowledge development, together with committed and centrally guided field experimentation, characterizes general institutional change. In contrast, coordinated and distributed “middle‐up‐down” process, together with autonomously emerged creation at the grassroots, characterizes specific institutional change.

Research limitations/implications

This is a new research area. Many more empirical and theoretical works are needed.

Practical implications

As to how China should improve policy capacity, the study indicates: to focus policy learning on specific parts and facets of institutional settings; to change policy‐makers' role from omni‐competent controller to catalyst/promoter of institutional change; to assign an active role to middle levels and allow broader participation and diverse experimentations.

Originality/value

The author explores interesting details of institutional entrepreneurship and institutional changes based on the two case studies. This work fills the gap of how to analyze institutional change from the innovation/innovation systems perspective.

Details

Journal of Science and Technology Policy in China, vol. 4 no. 1
Type: Research Article
ISSN: 1758-552X

Keywords

Content available
Book part
Publication date: 15 November 2018

Yi-Ming Wei and Hua Liao

Abstract

Details

Energy Economics
Type: Book
ISBN: 978-1-78756-780-1

Article
Publication date: 13 June 2024

Shaonan Shan, Yipeng Song, Chunjuan Wang and Wenyan Ji

Through the study, we identified four effective paths to improve governance performance and also found the key direction for future research on digital twin urban implementation…

Abstract

Purpose

Through the study, we identified four effective paths to improve governance performance and also found the key direction for future research on digital twin urban implementation of public crisis governance, i.e. how to find a balance between the cost and the effectiveness of governance.

Design/methodology/approach

A total of 22 urban public emergencies were selected based on key influencing factors, and four action paths to improve the performance of public crisis governance in digital twin cities were obtained using a fuzzy set qualitative comparative analysis model.

Findings

This paper identified digital twin technologies in urban public crisis governance, analyzed the key factors of public crisis governance in the digital twin city and proposed a path of action to improve the performance of public crisis governance in digital twin cities.

Originality/value

This study focuses on the influencing factors of public crisis governance in digital twin cities and the action paths to promote improved governance performance.

Details

Library Hi Tech, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0737-8831

Keywords

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