Insolvency,moral hazard and expense preference behavior: Evidence from US savings and loan associations |
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Authors: | Daniel M. Gropper T. Randolph Beard |
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Abstract: | This article applies the expense preference methodology to a study of determinants of employee compensation and occupancy costs for large samples of mutual and stock savings and loan associations. Strong evidence that insolvency is associated with significant increases in these costs is obtained. Further, we find that the effect of insolvency on managerial expense preference behavior is more pronounced for mutual than stock associations. |
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