Loan Repayment Performance in Community Development Finance Institutions in the UK

This paper identifies the key institutional factors that influence loan loss rates in Community Development Finance Institutions in the UK. Traditional bank credit assessment puts the blame of poor loan performance largely on the borrower. This is the first study of its kind to examine institutional characteristics of 16 CDFIs in the UK and assess their influence on the loan loss rates. The results show that 8 out of the 13 institutional characteristics examined significantly influence loan repayment performance. Although a vast body of literature supports the view that borrower characteristics are highly influential, our results provide strong evidence to show that institutional characteristics are equally important and both factors need to be taken into account if loan repayment performance is to be improved.     

Institutional investors, antitakeover defenses and success of hostile takeover bids

In this study we investigate the question of whether institutional investors enhance or reduce efficiency in the market for corporate control. In particular, given unequivocal evidence that target stockholders gain in successful takeover bids, we investigate the impact of institutional ownership in target firms on the adoption of the type of antitakeover defense as well as the outcome of takeover bids. We find that target firms are more likely to adopt value-reducing antitakeover defenses and successfully thwart takeover bids when a higher percentage of target common stock is owned by ‘pressure-indeterminate’ investors (investment counsel firms in particular). On the other hand, the probability of a successful takeover rises with the ownership of both ‘pressure-sensitive’ and ‘pressure-resistant’ investors. The above findings support the view that institutional investors do not play a homogeneous role in the market for corporate control.     

How do school ‘report cards’ affect school choice decisions?

Abstract. We estimate the effect of information about school achievement that is disseminated to the public through websites and school ‘report cards’ on school choice decisions. We find that students are more likely to leave their school when public information reveals poor school‐level performance. Some parents’ school choice decisions respond to information soon after it becomes available. Others, including non‐English‐speaking parents, alter their school choice decisions only in response to information that has been disseminated widely and discussed in the media. Parents in low‐income neighbourhoods are most likely to alter their school choice decisions in response to new information. JEL classification: I21, D83     

Evaluating Constructive Lease Capitalization and Off‐Balance‐Sheet Financing: An Instructional Case with FedEx and UPS

This case illustrates the effects of the proposed new lease standard by the Financial Accounting Standards Board and the International Accounting Standards Board on existing outstanding operating leases. Specifically, the case examines the effects of the proposal that all firms report existing operating leases as capital leases upon the initial adoption of the proposed standard. By applying a constructive capitalization model to two firms who rely on operating leases for financing, FedEx and UPS, we found that both companies would have to record billions of dollars of liabilities that had only appeared in the footnotes of their financial statements under the current lease standards. In addition, the firms would experience a decline in retained earnings and key financial ratios, such as the debt‐to‐equity, return‐on‐assets, and interest coverage ratios, by reporting operating leases as capital leases under the new proposed standard. Furthermore, the magnitude of the lease capitalization impact is much smaller for UPS than for FedEx.     

Not just surviving,but thriving: perceived strengths of successful US‐based travel agencies

In‐depth interviews with owners of 19 exceptionally successful US‐based travel agencies were analyzed using a ground theory approach to reveal customer service excellence, employee enrichment and effective networking as three core perceived strengths that comprise a theme of ‘relationship building’. The latter is supported by a theme of ‘facilitation’ entailing diligent client selection, a culture of learning, high adaptability (related to technology and product realignment), scale, adherence to business basics, and owner optimism. Together, both themes suggest a macro‐theme of ‘deep commitment’. The results provide guidelines for aspiring travel agency owners. Copyright © 2007 John Wiley & Sons, Ltd.     

Public Sector Organizational Failure: A Study of Collective Denial in the UK National Health Service

Journal of Business Ethics - This paper argues that public sector organizational failure may be best understood from a perspective of collective denial. The rise of this phenomenon is examined...     

‘I feel something is still missing’: leisure meanings of African refugee women in Canada

This research explored the leisure meanings of three African women, former refugees resettled in Canada. Using a hermeneutic phenomenological approach, this study revealed that leisure meanings were tightly bound in the women’s Christian faith, church, and faith community in affording them solace, socialisation, and community bonding. Furthermore, learning for leisure emphasised leisure for educational advancement, self-improvement, and knowledge-gain, to keep busy, and for companionship. Physically active leisures afforded fitness and fun, while nature-based leisure, particularly with friends, family, and their ethnocultural communities were important for restoration, nurturing relationships, and fostering social networks. These leisures also served to mitigate traumatic memories and stress. Because of the prominence of their Christian faith and the church as central to these women’s leisure, collaborative efforts by faith-based entities, leisure and recreation organisations and practitioners, settlement agencies, and mental health bodies, are recommended to effectively address the challenges and aspirations of resettled African women refugees through leisure.     

Institutional ownership stability and BHC performance

In this study, the association between performance of BHCs and institutional ownership stability is investigated and contrasted to those found for the less regulated utility and industrial firms in order to determine whether regulation displaces owner monitoring. We employ a simultaneous equations model treating firm performance and institutional ownership stability as endogenous variables. Several results are obtained. First, BHC performance is positively associated with institutional ownership stability. Second, this association is weaker for BHCs than for comparable utility and industrial firms, possibly because of the substitution of regulation for owner monitoring in banking. Third, this association is stronger in the recent deregulated years and for BHCs with lower likelihood of regulatory intervention.