42 research outputs found
Inside the black box: compensation structures of efficient Yugoslavian firms
The main purpose of the research discussed in this paper has been to try to understand the main determinants of labor productivity within a firm from the perspective of the worker through a model and econometric application. Understanding why workers do the best they can or "just make time" is at the heart of the issue. The results indicate that on the basis of these data there is support for the hypothesis that an hierarchical effort function of the workers may indeed help explain variations in firm productivity.productivity, cooperatives, worker self-management, Yugoslavia
Are CEO's paid their marginal product? An empirical analysis of executive compensation and corporate performance.
The theory and reality of chief executive compensation is explored in this paper. The study here uses a panel of data on 143 executives from America’s largest corporations. The results suggest that earlier theoretical expectations and empirical findings of compressed wage scales may not hold when top-level managers are included.compensation, executive, marginal products
Bad loans in the meltdown: micro analysis of credit union performance versus banks, an initial investigation
The current economic crisis has had a devastating impact in the credit markets as evidenced by bank failures, large bailouts and foreclosures. Trillions of dollars have been spent to prop up the financial sector in the U.S. alone. Credit unions, commercial banks and thrifts are where Americans go for home loans, but credit unions have a very different track record when it has come to bailouts from the government. Credit unions instead of taking trillions may ultimately not take a dime from the taxpayer. This paper will try to discern this advantage that credit unions have by focusing on the direct impact felt by financial institutions in the United States through net charge-offs from 1994 through 2009 using an exceptional data set that combines information on credit unions and banks in the U.S. from 1994 through 2009.credit unions; banks; cooperative; defaults; net charge-offs
Cooperative comebacks: resilience in the face of the Hurricane Katrina Catastrophe (New Orleans and Southern Mississippi, May 2005–May 2006)
Millions of lives were dramatically changed by Hurricane Katrina, the worst natural disaster in U.S. history. Numerous businesses were wiped out. People lost their homes, their livelihoods, their lives. Nearly two years after Katrina, some sectors of the aff ected region have proved to be more resilient than others. Th rough the able data collection and analysis of Mark Klinedinst, an economics professor at the University of Southern Mississippi, this report examines the plight of credit unions in the face of this disaster. Klinedinst compares credit unions with banks in southern Mississippi and in New Orleans at both the aggregate and case study levels. Klinedinst argues that analyzing credit unions under this kind of duress may be useful in identifying cooperative strengths and weaknesses that are not apparent under normal circumstances. These findings may assist credit unions with larger contingency planning as it relates to disaster preparedness.credit unions; banks; hurricane; Katrina; cooperatives; finance
Bank Decapitalization and Credit Union Capitalization: The Impact of Excessive Compensation
This article looks at the theory and empirical findings of excessive compensation on the recent financial implosion across institutional forms in banking. Compensation levels have gone up dramatically over the last 30 years as deregulation and concentration have grown. Some banks and quite a few credit unions avoided closure by prudent portfolio selection and keeping reserves up by maintaining compensation levels closer to the median level. Empirical findings here are based on a unique panel data set on U.S. commercial banks, thrifts, and credit unions from 1994 through 2010 (more than 300,000 observations) that provide evidence that the firms with the highest net worth typically are smaller institutions, are credit unions, have smaller insider loans as a percentage of assets, and have lower average pay levels. The favorable results here for credit unions, financial cooperatives, should help guide policy when deciding which type of financial institutions should be encouraged
Going forward financially: credit unions as an alternative to commercial banks
The global financial meltdown brought to light a number of weaknesses in the U.S. financial system. Not all financial institution types will be taking large sums of taxpayer money to address their crippling decisions. Credit unions in the U.S. represent a type of financial cooperative that will probably not take any taxpayer money directly due to their structure and prudential oversight. Commercial banks, especially the megabanks, are likely to see even more bailouts in the future unless structural weaknesses are addressed in the clarifications as part of the enforcement of the Dodd-Frank Act. Using a unique panel data set on U.S. commercial banks, thrifts and credit unions from 1994 through 2010 (over 300,000 observations) performance metrics on a number of dimensions point to strengths and weaknesses of the various financial institutional forms. Credit unions also have had far fewer adjustable rate mortgages and mortgage backed securities as a percent of their portfolio. Robust estimators to correct for potential endogeneity are used to analyze the ROA differentials between different institutional forms and portfolios. When controlling for size, region and portfolios credit unions are often estimated to have a better ROA. Institutions of under 50 million dollars, about 50 percent of the total sample, show credit unions having higher efficiency in that they control more assets per dollar spent on salaries than commercial and savings banks
Will without War?
While
congress
debates
the
merits
of
a
stimulus
package
of
around
900
hundred
billion
dollars,
a
historical
approach
to
the
current
situation
suggests
that
the
stimulus
packages
currently
being
discussed
are
actually
far
less
generous
than
may
be
needed.
The
Congressional
Budget
Office
projects
that
we
are
in
“a
recession
that
will
probably
be
the
longest
and
the
deepest
since
World
War
II.”
It
is
often
suggested
that
the
massive
spending
necessitated
by
the
nation’s
involvement
in
World
War
II
helped
end
the
Great
Depression.
Without
a
comparably
ambitious
unifying
cause,
however,
I
am
afraid
that
the
spending
required
to
pull
us
out
of
a
decline
will
be
considered
politically
unpalatable,
leading
to
an
inadequate
response
to
the
crisis.
An
examination
of
spending
patterns
during
the
nineteen-‐thirties
and
nineteen-‐forties
and
their
application
to
the
current
scenario
suggest
the
true
extent
of
the
stimulus
that
may
be
needed
Going forward financially: credit unions as an alternative to commercial banks
The global financial meltdown brought to light a number of weaknesses in the U.S. financial system. Not all financial institution types will be taking large sums of taxpayer money to address their crippling decisions. Credit unions in the U.S. represent a type of financial cooperative that will probably not take any taxpayer money directly due to their structure and prudential oversight. Commercial banks, especially the megabanks, are likely to see even more bailouts in the future unless structural weaknesses are addressed in the clarifications as part of the enforcement of the Dodd-Frank Act. Using a unique panel data set on U.S. commercial banks, thrifts and credit unions from 1994 through 2010 (over 300,000 observations) performance metrics on a number of dimensions point to strengths and weaknesses of the various financial institutional forms. Credit unions also have had far fewer adjustable rate mortgages and mortgage backed securities as a percent of their portfolio. Robust estimators to correct for potential endogeneity are used to analyze the ROA differentials between different institutional forms and portfolios. When controlling for size, region and portfolios credit unions are estimated to have a better ROA. Institutions of under a billion dollars, 96 percent of the sample, show credit unions having higher efficiency in that they control 30 percent more assets per dollar spent on salaries than commercial banks