Predicting Small Bank Failure

There are many studies of bank performance and bank failure in the literature. Most of these studies used banking ratios as variables in their models without giving consideration to their appropriateness, nor was much consideration given to the stability of those ratios through time and across asset size. Many studies also failed to recognize that bank structure may differ by asset size. This study evaluates a large number of banking variables in order to identify stable ratios. These ratios are then used in disaggregated logistic models to predict bank failure. The study finds that the disaggregated models with stable variables were better predictors of bank failure than aggregated models used in earlier studies

Areas Of Cross-Cultural Difference In The Workplace

In the last 30 years, there has been a shift towards using multicultural management strategies. The constant shifts taking place in multi-ethnic, multicultural, and multinational workforces indicate that both administrators of these organizations and higher education practices must evolve to adapt to needs for changing skill sets. A multicultural workforce offers advantages in that businesses may reach out effectively to various stakeholders. Leaders do well to cultivate an organizational culture that incorporates flexibility, understanding, and acceptance of alternate values, especially when working in foreign locations or multi-national organizations. Understanding of differences in cultural values and customs may reduce conflict and increase collaboration. To meet these challenges, leaders must be trained and educated to develop flexibility, understanding, and acceptance of alternate values when working in foreign locations or multi-national organizations. This article points out important areas of difference for organizations to address