Impact of the 2008-2009 recession on African-American owned US banks

2015 ◽  
Vol 41 (4) ◽  
pp. 385-395 ◽  
Author(s):  
William Lepley ◽  
Robert Nagy ◽  
Mussie Teclezion
Keyword(s):  
African American ◽  
Commercial Banks ◽  
Peer Group ◽  
Content Type ◽  
Loan Portfolios ◽  
Performance Differences ◽  
Before And After ◽  
The Usa ◽  
Significant Performance ◽  
Banking Institutions

Purpose – The purpose of this paper is to contribute to the literature on minority-owned commercial banks in the USA. Design/methodology/approach – The authors examine performance differences between African-American (AA) commercial banks and other minority (OM)-owned banks. Also, the authors compare AA bank performance with that of their peer-group banking institutions. Findings – Employing data both before and after the recessionary period of 2008-2009, the authors find significant performance differences between minority ownership categories. For example, prior to 2008, AA banks held a significant advantage over OM-owned banks in net interest income as a percentage of average assets. This competitive advantage was somewhat offset by relatively weak loan portfolios and failure to contain costs. The 2008 crisis served to exacerbate the negatives of African-American banks while their positive differences essentially disappeared. Originality/value – The focus is different than the previous studies on minority-owned banks. The authors are especially interested in how AA banks have fared – relative to banking industry peer institutions, but also, relative to OM-owned banks.

Tornadoes, poverty and race in the USA: A five-decade analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Russ D. Kashian ◽  
Tracy Buchman ◽  
Robert Drago
Keyword(s):  
African American ◽  
African Americans ◽  
Study Finding ◽  
Median Income ◽  
Content Type ◽  
Vulnerable Communities ◽  
Long Run ◽  
Level Data ◽  
The Usa

PurposeThe study aims to analyze the roles of poverty and African American status in terms of vulnerability to tornado damages and barriers to recovery afterward.Design/methodology/approachUsing five decades of county-level data on tornadoes, the authors test whether economic damages from tornadoes are correlated with vulnerability (proxied by poverty and African American status) and wealth (proxied by median income and educational attainment), controlling for tornado risk. A multinomial logistic difference-in-difference (DID) estimator is used to analyze long-run effects of tornadoes in terms of displacement (reduced proportions of the poor and African Americans), abandonment (increased proportions of those groups) and neither or both.FindingsControlling for tornado risk, poverty and African American status are linked to greater tornado damages, as is wealth. Absent tornadoes, displacement and abandonment are both more likely to occur in urban settings and communities with high levels of vulnerability, while abandonment is more likely to occur in wealthy communities, consistent with on-going forces of segregation. Tornado damages significantly increase abandonment in vulnerable communities, thereby increasing the prevalence of poor African Americans in those communities. Therefore, the authors conclude that tornadoes contribute to on-going processes generating inequality by poverty/race.Originality/valueThe current paper is the first study connecting tornado damages to race and poverty. It is also the first study finding that tornadoes contribute to long-term processes of segregation and inequality.

scholarly journals MANAJEMEN PERBANKAN BERBASIS NILAI: DAMPAK PADA PENGEMBALIAN PEMEGANG SAHAM

2020 ◽  
Vol 18 (3) ◽  
pp. 482-499
Author(s):  
Ahfi Nova Ashriana
Keyword(s):  
Performance Indicators ◽  
Commercial Banks ◽  
Macroeconomic Factors ◽  
Value Based Management ◽  
Percentage Points ◽  
Before And After ◽  
Banking Institutions ◽  
The 2008 Financial Crisis ◽  
Using Data ◽  
Loan Losses

In this study, we analyzed the drivers of Total Shareholder Revenue (TSR) at commercial banks and evaluated whether non-adopter TSR performed better by Value-Based Management (VBM) banks. TSR models using data from 132 commercial banks registered in Europe and North America are estimated. First, we point out that banking institutions that have publicly implemented VBM in their MCS outperform non-VBM banks. VBM adopters produce annual TSR with an average of 5.8 percentage points. In terms of profitability, growth and liquidity, they also outperform non-VBM banks. Second, we note that banking companies concentrate on key performance indicators (KPIs) such as cost-of-income ratios which are suboptimal TSR indicators. We propose the implementation of indicators closer to TSR, such as asset repayment or the provision of loan losses. In their MCS, to date few banks have considered such KPIs (10 percent -45 percent). The shift to KPIs we propose can further improve the performance of VBM adopters. Our findings stabilized before and after the 2008 financial crisis when we monitored macroeconomic factors.

Plan to clear Greek banks’ bad debt looks feasible

2017 ◽  
Keyword(s):  
Commercial Banks ◽  
Bank Lending ◽  
Gdp Growth ◽  
Working Capital ◽  
Content Type ◽  
Loan Portfolios ◽  
Key Sectors ◽  
The Government ◽  
Greek Banks ◽  
Bad Debt

Subject Efforts to cleanse banks’ loan portfolios. Significance More than half of Greek bank lending is classed as ‘non-performing exposures’ (NPEs), constraining lending capacity and so putting negative pressure on GDP growth. The government says it should have a whole package of measures in place by mid-August to deal with NPEs. There have been slippages before, but this time the creditors are leaning very heavily on Athens to stick to the timetable. Impacts Bad debts will limit commercial banks’ capacity to make new loans to key sectors of the economy. This will have an adverse effect on working capital for existing businesses and their trade. Lack of liquidity will also slow new investments and construction.

Re-discovering Charles Clinton Spaulding’s “The Administration of Big Business”

2016 ◽  
Vol 22 (1) ◽  
pp. 73-90 ◽  
Author(s):  
Leon C. Prieto ◽  
Simone T. A. Phipps
Keyword(s):  
Twentieth Century ◽  
African American ◽  
Positive Culture ◽  
Black Business ◽  
Management Style ◽  
Business Community ◽  
Big Business ◽  
Content Type ◽  
Business Executive ◽  
The Usa

Purpose – The purpose of this paper is to reveal the contributions made by Charles Clinton Spaulding, a prominent black business leader in the USA in the early 1900s. This paper highlights the management philosophies and practical work of Spaulding, an individual who considerably influenced African-American management thought and practice, and played an important role in Corporate America from the turn of the twentieth century onward. Design/methodology/approach – The research was conducted by reviewing and synthesizing a number of writings including published works by Spaulding himself, as well as articles about Spaulding from sources such as history journals, newspapers and other resources. Findings – Spaulding’s contributions were significant, from his insight regarding the fundamental necessities for the effective management of a business, to his management style and implementation of practices which reflected his recognition of the importance of transformational leadership, employee development, diversity, corporate social responsibility and a strong positive culture for the successful management of an enterprise. Thus, this paper concludes that the title of “Father of African-American Management” is a fitting tribute to this business pioneer who overcame the odds to become the most successful black business executive in the early twentieth century. Originality/value – The contributions made by minorities, including African-Americans, to management thought and practice have not been adequately covered in the literature. This paper begins to fill a noticeable void by drawing from infrequently acquired sources such as Spaulding’s article “The Administration of Big Business” and highlighting his contributions to the African-American community and the business community at large.

Leading by example

2015 ◽  
Vol 42 (1) ◽  
pp. 19-32
Author(s):  
Amy Beech ◽  
Do Won Kwak ◽  
Kam Ki Tang
Keyword(s):  
International Political Economy ◽  
Peer Group ◽  
Donor Country ◽  
Free Rider ◽  
Leverage Effect ◽  
Content Type ◽  
Opposite Case ◽  
Health Aid ◽  
Single Donor ◽  
The Usa

Purpose – The purpose of this paper is to explore the interdependence between donor countries’ health aid expenditures. The specific form of interdependence considered is the leader effect, whereby an influential country has a positive leverage effect on other donor countries’ aid expenditure. The opposite case of a free-rider effect, whereby a single donor country has a negative leverage effect on its peers, is also considered. Design/methodology/approach – Focusing on the identification of the leader effect avoids the estimation bias present in the identification of the peer group effect, due to endogenous social effect. The empirical analysis focuses on Development Assistance for Health provided by 20 OECD countries over the period of 1990-2009. Aid commitment and aid disbursement are distinguished. Findings – When aid dynamics, country heterogeneity, and endogeneity are accounted for, there is no evidence that the biggest donor – the USA, or the most generous donors – Norway and Sweden, exhibit any leverage effects on other donor countries’ aid expenditures. Originality/value – This is the first paper to examine the leader and free-rider effects in health aid provision as previous studies focus on peer effects. Any evidence of leader or free-rider effects (or the lack of it) adds to the understanding of international political economy especially in the area of foreign aid provision.

The use and determinants of credit derivatives in Italian banks

2014 ◽  
Vol 15 (4) ◽  
pp. 417-436 ◽  
Author(s):  
Eleonora Broccardo ◽  
Maria Mazzuca ◽  
Elmas Yaldiz
Keyword(s):  
Financial Distress ◽  
Economies Of Scale ◽  
Credit Derivatives ◽  
Financial Statements ◽  
Annual Reports ◽  
Probit Regression ◽  
Content Type ◽  
Before And After ◽  
The Usa ◽  
Available Information

Purpose – This paper aims to answer the following research questions: To what extent do banks use credit derivatives (CDs)? What are the differences between users and non-users? What are the main underlying motivations? Design/methodology/approach – The annual reports of 112 Italian banks are analysed during the 2005-2011 period. By estimating a probit regression model, two incentives for using CD are tested: managing credit risk, and increasing a bank’s income composition/diversification. Different sub-samples are considered. The motivations are further investigated to understand whether they vary before and after the crisis. Findings – A limited number of banks use CD and larger and listed banks are more likely to do so. The results do not support the hedging hypothesis. Signals pointing towards the financial distress hypothesis emerge. Less capitalised banks are more likely to use CD. For listed banks, the findings support the hypothesis that economies of scale exist. After the financial crisis, a number of determinants tend to gain significance, and a speculative driver emerges. Originality/value – Previous studies focus primarily on the USA, and single-country studies do not exist in the literature. Given the importance of risk management that the crisis has reinforced, investigating whether CD use has changed before and after the crisis is of interest. Given the incompleteness of the information on CDs, the paper contributes to increasing the available information on CDs by hand-collecting data from banks’ financial statements.

Ethnographic study on the Harley Davidson culture and community

2014 ◽  
Vol 9 (1) ◽  
pp. 67-74 ◽  
Author(s):  
Jeromy Corey ◽  
Phil Millage
Keyword(s):  
Interpersonal Relationships ◽  
Meaning In Life ◽  
Ethnographic Study ◽  
Way Of Life ◽  
Group Setting ◽  
Content Type ◽  
Before And After ◽  
The Usa ◽  
Primary Focus ◽  
The Impact

Purpose – One of the most powerful and organizing methods in the world today revolves around the activities that individuals participate in and the subsequent interpersonal relationships that give people meaning in life. The paper aims to discuss these issues. Design/methodology/approach – Today's society longs to add meaning and identity to their lives in a variety of ways. A sense of belonging, or a sense of community, has proven very impactful on the lives of many and creates certain changes to an individual's mindset that relate to the specific subsets of culture and consumption to which they identify with. Findings – The authors find that Harley Davidson has a strong following in the USA and suggest that it might also have one in China. Originality/value – In this paper, the authors attempt to define and better categorize a subset of the Harley Davidson following, while studying the habits, relationships, and reasoning behind both the new motorcycle owners, and the veterans of the Harley Davidson way of life. The authors will also attempt to analyze the role relationships (spouse, significant other, and friends or relatives) play in the decision to join this niche subculture. Analyzing these potential and newly converted Harley Davidson customers to gain insight and understanding about the deciding social factors at play in choosing this brand over the others is a primary focus. In studying this unique subculture of consumption, the authors hope to better understand the development and rationale of new Harley Davidson riders and to measure certain personal levels of enjoyment on an individual or group setting, and to analyze the impact on ones social image before and after purchase.

ERGs (employee resource groups) benefit employee wellbeing

2019 ◽  
Vol 27 (1) ◽  
pp. 45-46 ◽  
Keyword(s):  
African American ◽  
Native American ◽  
Leadership Development ◽  
Asian American ◽  
Well Being ◽  
Structured Interviews ◽  
Content Type ◽  
South Asian American ◽  
The Usa ◽  
Employee Resource Groups

Purpose A qualitative study of six employee resource groups (ERGs) in a not-for-profit organization in the USA tested whether they helped minorities to integrate. The positive results showed they act as powerful conduits for learning and development, and help staff well-being. Design/methodology/approach The researcher carried out 39 semi-structured interviews with people from each of the six groups, including executive sponsors. There were 11 participants from the African-American RG, 2 from the Native American RG, 4 from the Asian-American RG, 5 from the Hispanic-American RG, 7 from the LGBT RG, and 3 from the South Asian-American RG. Seven executive sponsors were also interviewed. All participants were asked to describe the organization’s culture and explain how much support they received on diversity issues. Findings Members explained how ERGs offered communities for the exchange of ideas. They helped individuals deal with “micro-aggressions” when the dominant social groups indulged in prejudicial stereotyping. Useful activities were both informal and formal. Informal conversations were helpful, especially for younger members. More formal activities depended on member interests. For example, the African-American and Asian-American RGs hosted a lot of leadership development initiatives. There were events aimed at educating the whole workforce about minority issues. Originality/value The results are important for businesses, and other organizations, because research shows they perform better when they integrate diverse employees.

Influences on assertiveness: gender, national culture, and ethnicity

2015 ◽  
Vol 34 (4) ◽  
pp. 421-439 ◽  
Author(s):  
James B. Parham ◽  
Carmen C. Lewis ◽  
Cherie E. Fretwell ◽  
John G. Irwin ◽  
Martie R. Schrimsher
Keyword(s):  
African American ◽  
African American Women ◽  
National Culture ◽  
Undergraduate Students ◽  
Future Research ◽  
Content Type ◽  
White American ◽  
Gender Culture ◽  
The Usa ◽  
The Republic

Purpose – The purpose of this paper is to contribute to assertiveness research and assess the differences in assertiveness as it relates to gender, national culture, and ethnicity. Design/methodology/approach – The data for the study are from 231 undergraduate students majoring in business at one of four academic institutions: three in the USA and one in the Republic of Vietnam. Students completed the 30-item Rathus Assertiveness Schedule. Findings – This research suggests that individuals who are alike in level of education and status demonstrate similar levels of assertiveness, regardless of gender, national culture, or ethnicity. However, differences were seen as the data show white American males to be the most assertive, with African American females next. White females ranked third, followed by Vietnamese females, concluding with Vietnamese males. Research limitations/implications – Although the sample size is small, the intent of this research was never to have the subjects represent the general population in terms of the variables used. Instead, the authors attempted to control for gender, culture, and ethnicity variables by using a sample of college students who were similar in relation to education and social status. Future research could more fully research the findings from this study which suggest that African American women are more assertive than all other groups with the exception of white males. Originality/value – This study also gives credence to the suggestion that the global manager, in order to become more effective, needs to fully understand employee differences as represented by gender, national culture, and ethnicity.

Profits to opportunistic insider trading before and after the Dodd-Frank act of 2010

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Partha Gangopadhyay ◽  
Ken Yook
Keyword(s):  
Insider Trading ◽  
Multivariate Regression ◽  
Trading Behavior ◽  
Content Type ◽  
Share Prices ◽  
Insider Trades ◽  
Trading Profits ◽  
Before And After ◽  
The Usa ◽  
Regression Tests

Purpose The authors examine if opportunistic insider trading profits decrease after the enactment of the Dodd-Frank Act (DFA) in 2010. The DFA expands legal prohibitions on insider trading in the USA. Design/methodology/approach The authors identify opportunistic insider trades following a method that is outlined in Cohen et al. (2012). The authors examine univariate statistics and perform multivariate regression tests to examine opportunistic trading profits before and after the DFA. Similar multivariate regression tests have been used widely in the literature to examine the profitability of insider trades. Findings The authors find that opportunistic insider purchases were highly profitable before the DFA. Profits after opportunistic purchases were significantly lower after the DFA. Opportunistic insider sales were contrarian trades both before and after the DFA. However, share prices kept increasing after insiders sold their shares. Originality/value To the best of the authors’ knowledge, the paper is the first study that compares the profitability of opportunistic insider trades, as identified by Cohen et al., before and after the DFA. The study contributes to the literature that finds that insiders change their strategic trading behavior when the potential costs of the illegal trading increase due to regulatory action.

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