investigating the cost performance of uk credit unions using radial and non radial efficiency measures abstract this paper examines the relative efficiency of uk credit unions radial and non radial measures of input cost efficiency plus associated scale efficiency measures are computed for a selection of input output specifications both measures highlighted that uk credit unions have considerable scope for efficiency gains it was mooted that the documented high levels of inefficiency may be indicative of the fact that credit unions based on clearly defined and non overlapping common bonds are not in competition with each other for market share credit unions were also highlighted as suffering from a considerable degree of scale inefficiency with the majority of scale inefficient credit unions subject to decreasing returns to scale the latter aspect highlights that the uk government s goal of larger credit unions must be accompanied by greater regulatory freedom if inefficiency is to be avoided one of the advantages of computing non radial measures is that an insight into potential over or under expenditure on specific inputs can be obtained through a comparison of the non radial measure of efficiency with the associated radial measure two interesting findings emerged the first that uk credit unions over spend on dividend payments and the second that they under spend on labour costs

detecting abnormal credit union performance abstract credit unions are an important financial intermediary but little credit union research is done a primary reason for the lack of research is the cooperative nature of the industry making traditional methods of detecting abnormal performance inappropriate this paper proposes two methods of detecting abnormal performance one parametric the other non parametric instead of testing the efficiency of the institution this paper proposes testing the return vector as indicated in the theoretical objective function of the member simulations demonstrate that both methods are correctly specified and powerful

international diversification through closed end country funds abstract the primary objectives of this paper are to assess the potential of closed end country funds cecfs as vehicles for achieving international diversification at home and to examine the effect of the closed end status of these funds on their investment characteristics the main findings are first cecfs exhibit significant exposure to the u s market factor and act more like u s securities than do their underlying assets second despite these characteristics cecfs retain significant exposure to their local home market factors and provide u s investors with substantial diversification benefits emerging market funds such as brazil mexico and taiwan receive large weights in optimal international portfolios comprised of cecfs implying that these funds can play a unique role in spanning the opportunity set for u s investors third performance evaluations indicate that our sample cecfs generally did not offer significant overseas alphas fourth fund value and net asset value are found to be co integrated for the majority of cecfs from north america and europe but not for those representing the asian emerging markets

new venture internationalization strategic change and performance a follow up study abstract although many scholars business experts and government agencies enthusiastically advise all firms including new and small ventures to internationalize such advice does not appear to be based on empirical evidence few researchers have empirically examined the link between new venture performance and the internationalization of new ventures at best the evidence suggests that there is no significant relationship we used a sample of 62 u s new venture manufacturers in the computer and communications equipment industries during the late 1980s these industries were purportedly globalizing and may have been leading other industries into increased international operations we found that higher levels of internationalization percentage of foreign sales to total venture sales were associated with higher relative market share two years later however there was no significant direct relationship between percentage of international sales and subsequent return on investment roi perhaps international operations simply cost more than expected or perhaps as macmillan and day 1987 found in their study of corporate ventures over a 4 year time period increases in market share may be a prelude to higher roi as scale benefits translate into higher profitability however the 2 year time period of our study may simply not be long enough for investments in higher market shares to produce improved profits during the 2 year study period many of the ventures changed their level of internationalization of the 36 ventures who were domestic no international sales in the prior study 10 expanded into international markets over the 2 years of the 26 originally international ventures international sales of at least 5 half increased their percentage of international sales nine reduced it and four stayed the same whereas the average change in international sales percentage of the ventures was only 2 9 percentage points the large standard deviation of 13 0 percentage points and the leptokurtic distribution 9 2 reflected the dramatic changes made by some of the ventures using subgroup analysis we examined these changes in percentage of international sales in conjunction with changes in strategies and performance ventures that had increased international sales relative to those that had not exhibited more positive associations between the degree of strategic change and performance as measured in terms of both relative market share and roi increased international sales in technology based new ventures seems to require simultaneous strategic changes in order to positively impact venture performance this study is a follow up to mcdougall s 1989 finding that technology based new ventures that had sales in foreign markets had significantly different strategies than similar ventures that sold their products only domestically the current study enriches the previous findings by adding consideration of 1 changes in degree of internationalization 2 changes in strategy and 3 venture performance although we found no performance penalty associated with increasing international sales alone indiscriminant advice for new ventures to sell in foreign markets without other supporting strategic actions is inconsistent with our findings internationalization alone did not lead to increased profitability entrepreneurs of young technology based firms who are considering internationalization should take heed of our results internationalization of sales does not appear to be a simple matter of applying established strategies and procedures developed for a domestic arena successful internationalization appears to require changes in the venture s strategy as well

experiential knowledge and cost in the internationalization process using a behavioral approach this study identifies and delineates components of experiential knowledge in the internationalization process three hypotheses are developed and tested they center ar

credit union rate and earnings retention decisions under uncertainty and taxation this paper presents a model of credit union loan and deposit rate setting when net income flows are uncertain and subj ect to taxation optimal rates are chosen to maximize the expected va lue of a performance measure based on a comparison of the credit unio n s rates to alternative rates subject to a probabilistic constraint on the net change in capital reserves relative to a capital adequacy standard taxation will alter the end of period trade off between th e change in capital reserves and the immediate distribution of surplu s and would likely affect credit unions in a nonuniform manner and p erhaps be regressive in nature copyright 1988 by ohio state university press

consumer biases and mutual ownership abstract we show how ownership of the firm by its customers as well as nonprofit status can prevent firms from using contractual terms that take advantage of consumer biases by eliminating an outside residual claimant with control over the firm these alternatives to investor ownership reduce the incentive of the firm to offer such terms however customers who are unaware of their behavioral biases may fail to recognize this advantage of non investor owned firms we present evidence from the consumer financial services market that supports our theory comparing contract terms we find that mutually owned firms offer lower penalties such as default interest rates and higher up front prices such as introductory interest rates than do investor owned firms however consumers most vulnerable to these penalties are no more likely to use mutually owned firms

ownership effects among native american banks 2001 2016 abstractminority depository institutions mdis including native american banks natbs play an integral role in providing financial services to the under served natbs are split between those th

an aggregate model of the credit union industry prior to 1971 credit unions cus were almost exclusively short term lenders with their deposit base consisting primarily of passbook share accounts radical institutional changes during the 1970 s have reshaped the industry and increased the competition between cus and other financial institutions the introduction of federal share insurance in 1971 coupled with the highest deposit ceiling allowed by regulators allowed cus to attract funds from other intermediaries while cus have a yield advantage they have been much slower to introduce day of deposit to day of withdrawal interest accumulation so that many cu deposits may be regarded more as short term certificate accounts rather than open passbooks thus as the federal reserve system and the federal home loan bank board have liberalized cu yields maturities and minimum denominations it has affected cus ability to attract share deposits substantial competition exists in loan markets as well banks finance companies and the credit acceptance subsidies of many manufacturing corporations also extend consumer credit while cus have entered mortgage markets in this study a six equation simultaneous model is developed to estimate three different aggregate flows within the industry new loan extensions net share flows and net change in financial investments two price variables the average cu loan rate and average dividend rate and the median maturity on newly extended loans to account for endogenous changes in non price terms which may affect both the supply and demand for loans this study is important to both researchers and policymakers despite the movement to make credit unions more like and more competitive with other financial institutions there remains a general perception that cus are different that they cannot be analyzed by applying well known economic theories and methods and that they remain insulated from both general economic conditions and competition the evidence from this study suggests that those perceptions are in error even though the industry remains small relative to other providers of consumer financial services because cus are no longer insulated it is important to know the impact of changing economic conditions on the industry department of economics john carroll university funding by the national credit union administration ncua is gratefully acknowledged participants in a seminar at ncua provided the author with seveal suggestions which were incorporated in the research special thanks are due to john wolken who spent countless hours in discussion with the author and catherine melfi and george kosicki who provided research assistance any remaining errors or omissions are the sole responsibility of the author

accounting window dressing and template regulation a case study of the australian credit union industry this article documents the response of cooperative institutions that were required to adhere to new capital adequacy regulations traditionally geared for profit maximising organisations using data from the australian credit union industry we demonstrate that the cooperative philosophy and internal corporate governance structure of cooperatives will lead management to increase capital adequacy ratios through the application of accounting window dressing techniques this is opposite to the intended purpose of template regulation aimed at efficiently increasing operating margins and lowering risk our results raise several debatable issues regarding the ethics of accounting management and the imposition of one shoe fits all external regulation

the evolution of cost productivity and efficiency among us credit unions abstract advances in information processing technology have eroded the advantages of small scale and proximity to customers that traditionally enabled small lenders to thrive nonetheless the membership and market share of us credit unions have increased though their average size has also risen we investigate changes in the efficiency and productivity of us credit unions during 1989 2006 by benchmarking the performance of individual firms against an estimated order quantile lying near the efficient frontier we construct a cost analog of the malmquist productivity index which we decompose to estimate changes in cost and scale efficiency and changes in technology we find that cost productivity fell on average across all credit unions but especially among smaller credit unions smaller credit unions confronted a shift in technology that increased the minimum cost required to produce given amounts of output all but the largest credit unions also became less scale efficient over time

credit union policies and performances in latin america this paper presents a conceptual framework for explaining credit unions cus loan delinquency and profitability in developing countries it also offers an empirical estimation for a unique sample of cus in latin america

optimal credit rationing in not for profit financial institutions we examine the dynamic optimization problem for not for profit financial institutions nfps that maximize consumer surplus not profits we characterize the optimal dynamic policy and find that it involves credit rationing interest rates set by mature nfps will typically be more favorable to customers than market rates as any surplus is distributed in the form of interest rate subsidies with credit rationing being required to prevent these subsidies from distorting loan volumes from their optimal levels rationing overcomes a fundamental problem in nfps it allows them to distribute the surplus without distorting the volume of activity from the efficient level

the internationalization of small and medium sized firms this paper contributes to the existing research by integrating the notions of organizational learning and entrepreneurial orientation into the body of international entrepreneurship our primary framework combines learning theory and the new venture theory of internationalization to study the extent to which small and medium sized companies engage in international activities we found that the firms international learning effort and entrepreneurial orientation are positively associated with internationalization intent whereas domestic learning effort is negatively related with internationalization intent overall our results suggest 1 that intensive knowledge renewal and exploitation regarding foreign markets and the internationalization process itself may increase internationalization by affecting the perceptions of opportunities offered by further international expansion and 2 that firms with an entrepreneurial mindset may be more likely to develop a long term substantial presence in the international arena compared to firms that are more reactive or conservative

behind intermediary performance in export trade transactions agents and resources integrating transaction cost agency and resource based theories this study extends the work of peng and ilinitch 1998 by undertaking the first empirical efforts to explore the determinants of export intermediary performance we suggest that given the transaction cost constraints and principal agent conflicts export intermediaries performance depends on their possession of valuable unique and hard to imitate resources which help minimize their clients transaction and agency costs survey results from 166 firms largely support our hypotheses

an economic theory of a credit union the majority of research to date on cus has been empirical cf cargill 1 and kidwell and peterson 7 yet there is serious need to develop a theoretical framework of cu behavior that incorporates their unique characteristics a cu is essentially a financial intermediation cooperative however the standard theoretical treatments of financial intermediaries cf meyer 8 and cooperative enterprises cannot be directly applied to model credit union behavior there are two principal characteristics of cus that prevent this first in a cu and cooperatives in general the members are both the owners of the organization and the consumers of its output or suppliers of its input one cannot simply assume that the members seek to maximize the profit generated by their transactions with the cu irrespective of the price and quantities of those same transactions thus models of a financial firm based on profit maximization cannot be directly translated to a cu environment second in a cu the membership provides both the demand for and supply of loanable funds the cu then intermediates between its member savers and member borrowers this heterogeneity is an inherent source of conflict between members clearly a cu cannot simultaneously maximize its dividend rate for savers and minimize its loan rate for borrowers since most theoretical models of cooperative enterprises assume a homogeneous member objective they are not generally applicable to cus there are two basic requirements for a framework to model cu behavior first the specification of the objective function should focus on the value of cu participation to the members this value should include the prices and quantities of transactions as well as any profit that results second the analysis should explicitly consider the possibility of conflict among members and the resolution of that conflict being a preference to either the borrowers or savers the existing literature on cus contains a wide variety of objective functions hempel and yawitz 5 ignore the owners are consumers issue and simply contend that cus like other financial intermediaries should maximize profit most writers however recognize that profit maximization would be a somewhat incongruous objective for an organization that typically labels itself not for profit murray and white 9 use cost minimization subject to an output constraint keating 6 employs the managerial discretion approach by maximizing the manager s utility function subject to minimum member benefit constraints taylor 11 12 suggests that the cu should minimize the difference between its average loan rate and savings rate paid smith 10 argues that the cu should

rural finance and agricultural technology adoption in ethiopia does the institutional design of lending organizations matter summary it has now become almost a stylized fact that sustained agricultural growth is central to rapid poverty reduction and economic development yet world poverty is largely concentrated in the agrarian societies which have the potential for agricultural productivity growth this is particularly true for sub saharan african countries where the gaps between potential and actual yields remain high minimizing this gap through the promotion of modern inputs such as fertilizer and modern seeds has been at the core of almost all development strategies in ethiopia among other initiatives the country has promoted microfinance institutions and member owned financial cooperatives to alleviate credit constraints of the smallholder farmers this paper analyzes the impacts of these institutions using household survey data and a propensity score matching technique we examine the effects that institutional financial services have on farmers adoption of agricultural technology in ethiopia the results suggest that access to institutional finance has a significant positive impact on both the adoption and extent of technology use however when impacts are disaggregated by type of financial institution and farm size heterogeneities are observed in particular financial cooperatives have a greater impact on technology adoption than microfinance institutions and the results appear to vary depending on farm size and types of inputs the paper concludes with implications for policies to promote adoption of modern agricultural inputs

sustainable competitive advantage combining institutional and resource based views this article suggests that the context and process of resource selection have an important influence on firm heterogeneity and sustainable competitive advantage it is argued that a firm s sustainable advantage depends on its ability to manage the institutional context of its resource decisions a firm s institutional context includes its internal culture as well as broader influences from the state society and interfirm relations that define socially acceptable economic behavior a process model of firm heterogeneity is proposed that combines the insights of a resource based view with the institutional perspective from organization theory normative rationality institutional isolating mechanisms and institutional sources of firm homogeneity are proposed as determinants of rent potential that complement and extend resource based explanations of firm variation and sustainable competitive advantage the article suggests that both resource capital and institutional capital are indispensable to sustainable competitive advantage 1997 john wiley sons ltd

resource dependency and institutional theory perspectives on direct and indirect export choices this article develops and tests resource dependency and institutional theory arguments to explain two choices facing sme owner managers 1 the decision whether to export or not and 2 if the firm exports the choice between a direct to customers abroad and an indirect using another firm as intermediary export mode binomial logistic regressions on our sample of 871 dutch smes suggest that institutional theory perspectives owner managers perception of the increased international presence of their domestic competitors customers and suppliers and perceptions of increased use of foreign suppliers explain the decision to export while resource dependency theory arguments owner managers perception of the favorability of access to knowledge and technology of production costs and of access to capital in the home market guide the choice between direct and indirect export modes

economies of scale and economies of scope in multiproduct financial institutions a study of british columbia credit unions this paper investigates the production technology facing computerized credit unions in canada a full system of translog cost equations is estimated in order to test for economies of scale economies of scope and other production characteristics in a multiproduct context the regression results indicate that most of the credit unions in our sample experience significant increasing returns to scale as they expand their level of output there is also evidence of cost complementarity or economies of scope in their mortgage and other lending activities as a result legislation which limits the ability of credit unions to grow and diversify will likely raise the operating costs of this important group of financial institutions additional structural tests of the most general translog specification suggest that none of the restrictive production conditions commonly imposed by other researchers using cobb douglas and ces specifications provide a valid representation of credit union technology the results of many earlier studies are therefore open to question this paper presents a number of structural tests of the production technology facing large computerized credit unions in canada a full system of translog cost equations is estimated using detailed cross sectional data on british columbia credit unions the parameter estimates obtained from our multiproduct specification allow us to test for economies of scale economies of scope and factor substitution unlike many earlier studies the present paper introduces the various outputs as separate variables instead of crudely proxying them with a single output measure such as total assets the total number of loans or the number of depositors by explicitly recognizing the multiproduct nature of the intermediation process we are able to address more interesting production questions and remove some of the bias caused by misspecification and measurement error in simpler approaches the flexible translog specification allows us to estimate the sensitivity of costs to proportionate increases in all outputs economies of scale as well as the cost savings firms realize by producing several outputs jointly rather than specializing in the production of one economies of scope the test results reported in the latter part of the paper suggest that increasing returns to scale exist in almost all of the credit unions in our sample though

a theoretic framework for the analysis of credit union decision making this paper presents a formal theoretic framework to analyze credit union interest rates on loans and savings deposits the unique motivational and institutional features of a credit union in particular its structure as a financial service cooperative are used to develop the objective function this is based on a comparison of the credit union s rates to alternatively available market rates and includes parameters to recognize the possibility of borrower saver conflict the principal result is that the optimal rates and reactions to exogenous changes depend critically on the preference of the organization toward financial gain to the borrowing and saving members

the growth of us credit unions abstract the growth of us credit unions during the 1990s is investigated empirically using univariate and multivariate cross sectional and panel estimation techniques univariate tests of the law of proportionate effect suggest that in general large credit unions grew faster than their smaller counterparts on average credit unions with above average growth in one period tended to experience below average growth in the next smaller credit unions tended to have more variable growth than large ones while credit unions share a common co operative philosophy they differ in terms of age profile scope for membership growth charter type and financial structure and performance in estimations of a multivariate growth model most of these characteristics are found to have a significant influence on the size growth relationship while large state chartered credit unions grew faster than their smaller counterparts the reverse was true for federally chartered credit unions in general if larger credit unions grew faster than smaller ones they tended to do so for specific reasons because their charters were less restrictive because they were more efficient or because they had a financial structure that was more conducive to growth therefore credit union growth was not random but highly systematic

international versus domestic entrepreneurship new venture strategic behavior and industry structure abstract international entrepreneurship is defined in this study as the development of international new ventures or start ups that from their inception engage in international business thus viewing their operating domain as international from the initial stages of the firm s operation one hundred and eighty eight new venture firms in the computer and communications equipment manufacturing industries are classified according to the percentage of their sales in the international market ventures with no sales derived from international activities are considered domestic new ventures and ventures with sales from international activities comprising greater than 5 of total sales are considered international new ventures the strategy and industry structure profiles of international new ventures are significantly different from domestic new ventures the internationals pursue much broader market based strategies seeking a strategy of broad market coverage through developing and controlling numerous distribution channels serving numerous customers in diverse market segments and developing high market or product visibility the internationals also emphasize a more aggressive entry strategy building on outside financial and production resources to enter numerous geographical markets on a large scale securing patent technology is also an important component of their strategy this suggests that the internationals compete by entering the industry on a large scale seeking to penetrate multiple markets with the recognition that external resources are necessary to support such an entry whereas both the domestics and the internationals characterize domestic competition as being relatively intense the international new ventures compete in industries with higher levels of international competition it is not clear from this research whether the new venture selects an industry with a high degree of international competition and therefore responds with an international orientation or because the new venture has an international orientation it perceives or recognizes a higher degree of international competition another industry structure difference is the internationals perceived higher degree of restrictiveness due to government regulation it is unclear whether this restrictiveness motivates new ventures to seek less regulated international environments or if it indicates that when competing internationally the new venture is confronted with increased regulatory requirements domestic new ventures are distinguished by their emphasis on a production expansion strategy and customer specialization strategy the production specialization strategy consists of focusing on limited geographical markets maintaining excess capacity and pursuing forward integration the customer specialization strategy incorporates the production of a specialty product that is purchased infrequently thus for both of the domestic strategies a consistent closeness between the producer and consumer is implied this may be an important basis underlining the new venture s decision to compete in an exclusive domestic context this study offers initial support for the notion of international entrepreneurship by its findings that there are significant differences between new venture firms competing domestically and new ventures choosing to also enter international markets

the dual characteristics of closed end country funds the role of risk this article explores which of two hypotheses market segmentation or investor sentiment determines the behaviour of closed end country funds cecfs with the inclusion of risk factors the risk factors are proxied volatility as estimated with a bivariate markov switching autoregressive conditional heteroskedasticity bswarch model which simultaneously includes foreign and us markets our findings are as follows on average a positive response is larger than a negative response in terms of absolute value and the market segmentation hypothesis with risk factors gains support in mexico where cecf returns are related to a market with low volatility but not to one with high volatility third the investor sentiment hypothesis which argues that cecf returns are not responsive to foreign markets is weakly supported in brazil the philippines indonesia and to a lesser degree in germany

mode of international entry an isomorphism perspective the determination of entry modes is examined using an institutional theory framework two sources of isomorphic pressures affect a strategic business unit s sbu entry mode choice 1 host country institutional environment and 2 internal institutional environment the parent organization sbus were hypothesized to adopt similar organizational forms structures policies and practices thus becoming isomorphic based on felt pressures to conform to behavioral norms within the environments the results indicated that sbus using wholly owned entry modes demonstrated high levels of internal parent isomorphism those using exporting joint ventures or licensing agreements demonstrated external isomorphism and those using multiple or mixed entry mode demonstrated low levels of isomorphic pressures

benefit imbalances among credit union member groups evidence of borrower dominated saver dominated and neutral behaviour theoretical models of credit union cu behaviour suggest that cus may be saver dominated borrower dominated or neutral a cu is dominated if it is operated for the benefit of one member group at the expense of the other neutral behaviour occurs when a cu is managed so that both member groups are equally benefited this empirical study develops a direct measure of the monetary benefits to each member group and tests for the existence of dominated behaviour among us cus in 1984 and 1985 evidence of dominated and neutral behaviour is found and the operating characteristics of these distinct organizational forms are generally consistent with theoretical expectations

on the dual characteristics of closed end country funds abstract in a mildly segmented world market closed end country fund cecf returns and premiums or discounts would be determined by factors due mainly to market segmentation and investor sentiment the role of these two types of factors has been debated we reexamine this issue by examining the relative importance of us market returns and foreign market returns in determining cecf returns by employing time series empirical methods we find that cecf returns are more heavily influenced by their local foreign market returns than by us market returns which implies that there remains a substantial diversification benefit from investing in cecfs

institutional change in large law firms a resource dependency and institutional perspective we integrate resource dependency and institutional theory to argue that resource scarcity drives and legitimacy enables institutional change building on a historical account we examine the sources and timing of innovation departing from standard human resource practices using event history analysis of over 200 principal offices of large law firms offices with human resource scarcity innovated to acquire alternative resources highly prestigious offices had the legitimacy to be first or early adopters our findings highlight the value of looking to the resource side and to the notion of legitimacy in building an institutional theory of change

export intermediation an empirical test of peng and ilinitch this paper provides empirical evidence from france on the role of export intermediary firms using data from 20 000 french firms this paper tests two of the five transaction cost based propositions on the role of export intermediaries by peng and ilinitch 1998 while the empirical evidence only partially supports their first proposition on distance and familiarity their second proposition on product complexity is corroborated

volatility and time varying risk premiums in the stock market the stock returns generating process is analysed using alternative specifications of the autoregressive conditional heteroscedasticity model empirical anaylysis using monthly data from the finnish stock market shows a clearly significant persistence of volatility of stock prices in addition the presence of a time varying risk premium in the stock returns is also clearly supported by the data this suggests a cautious attitude towards traditional standard empirical analysis of capital markets which is based on the assumption of time invariant risk premiums the results obtained do not support the view that the risk premiums have increased during the 1980s when instability has been the main characteristic of most financial markets

credit union structure growth and regulatory problems at year end 1979 there were 12 738 federal and 4 769 state chartered federally insured credit unions in the united states their assets were 36 5 billion and 18 5 billion respectively the industry was the fastest growing of all financial intermediaries during the early to mid 1970s factors contributing to a growth rate of 18 percent from 1970 to 1978 were the absence of regulation q restrictions on cu dividend rates tax exempt status of cus the advent of share insurance in 1970 and the impact of sponsor subsidies however during 1979 federal credit union savings grew by only 2 4 which was more than 85 lower than in the preceding year and was the slowest annual growth rate on record indeed since 1977 federal credit unions have gone from the fastest growing to the second slowest growing type of depository institution the reason for the changes in credit unions will be discussed after this section which provides background information on the structure of the industry that structure has historically led to a reduction in risk the basic components of that structure are common bond and sponsorship common bond credit unions are unique financial depository institutions in that they are consumer cooperatives and are limited to serving the market for consumer credit and savings generally these institutions cannot do business with the general public due to charter limitations based on serving a membership that is characterized by a common bond the common bond is based on occupation association or residence the only exceptions are generally found under state law and apply to state chartered institutions the common bond restriction on credit union membership is assumed to reduce the cost of gathering credit information reducing bad debt losses and manifests national credit union administration the views expressed herein are those of the authors and do not necessarily reflect those of the national credit union administration an extensive review of the history of credit unions and the institutional structure is found in

using monthly returns to model conditional heteroscedasticity this empirical study examines the extent of non linearity in a multivariate model of monthly financial series to capture the conditional heteroscedasticity in the series both the garch 1 1 and garch 1 1 in mean models are employed the conditional errors are assumed to follow the normal and student t distributions the non linearity in the residuals of a standard ols regression are also assessed it is found that the ols residuals as well as conditional errors of the garch models exhibit strong non linearity under the student density the extent of non linearity in the garch conditional errors was generally similar to those of the standard ols the garch in mean regression generated the worse out of sample forecasts

factors affecting export intermediaries service offerings the british example this study attempts to determine and explain the service offering behavior of british export intermediaries eis it was empirically confirmed that eis offer two categories of services transaction creating and physical fulfillment services it was postulated that the extent to which an ei offers these types of services is influenced by a set of factors that are internally product market supplier and buyer related empirical tests on a sample of 135 british eis established that an ei s exporting role number of employees amount of undifferentiated products carried number of suppliers and number of countries served all have a direct impact on an ei s service offering behavior

frugal innovation a review and research agenda abstract this study aims to review the frugal innovation literature in order to understand the main sources theories and overlapping concepts as well as the input success factors impeding factors and output of frugal innovations fis a systematic research approach was applied in this study to synthesize the frugal innovation literature using a standard research review protocol 101 relevant articles were extracted from 11 publication databases we found that even though frugal innovation literature is in an embryonic stage there are over a dozen of definitions of it this study analyses various definition of frugal innovation the fi concept overlaps with a large number of other concepts thus hindering the pace of fi research combining many overlapping concepts into one frugal innovation would help to develop frugal innovation as a well established discipline the theoretical development of frugal innovation discipline is still in an early stage hence theory driven studies are necessary fis are emerging from numerous sources as such exploring it from various levels and units of analysis are important fi requires a significant change in a firm s approach to innovation it plays an important role in sustainability based on the analysis of the extant frugal innovation literature this study points out research agenda

experiential knowledge and costs in the internationalization process using a behavioral approach this study identifies and delineates components of experiential knowledge in the internationalization process three hypotheses are developed and tested they center around the lack of knowledge in the areas of foreign business foreign institutions and firm internationalization as well as the effect that this lack of knowledge has on managers perceived cost in the internationalization process with the help of a lisrel based structural model the three hypotheses are tested on a sample of 362 service firms the analysis shows that lack of internationalization knowledge has a strong impact on the lack of both business and institutionalization but there is no direct effect of lack of internationalization knowledge on perceived cost of internationalization

determinants of margin in microfinance institutions abstractmicrofinance institutions mfis lend to the poor however microfinance clients suffer from high interest rates a type of poverty penalty this article analyses the margin determinants in mfis a banking model has been adapted to microfinance this model has been tested using 9 year panel data some factors explaining bank margin also explain mfi margin with operating costs being the most important factor specific microfinance factors are donations and legal status as regulated mfis can collect deposits it has also been found that mfis operating in countries with a high level of financial inclusion have low margins

the internationalization of small and medium sized enterprises a policy perspective small and medium sized firms play an impor tant role in the process of creative destruction the focus of the paper is on the international diffusion of small and medium sized firms innovations small and medium sized firms face two challenges in globalization property rights protection and barriers to entry we suggest that these barriers can frequently be circumvented by using existing multinationals as interna tional conduits for small and medium size firms innovations however such intermediated modes of expansion is adversely affected by transaction difficulties and intermediator s rent extraction we raise two categories of questions i is the private sector systematically making the wrong choice between the direct and intermediated mode of international expansion and ii what should be the policy guidelines to improve the overall rate of international diffusion of innova tion by small and medium sized enterprises

persistence in variance structural change and the garch model this article examines the persistence of the variance as measured by the generalized autoregressive conditional heteroskedasticity garch model in stock return data in particular we investigate the extent to which persistence in variance may be overstated because of the existence of and failure to take account of deterministic structural shifts in the model both an analysis of daily stock return data and a monte carlo simulation experiment confirm the hypothesis that garch measures of persistence in variance are sensitive to this type of model misspecification

the effects of parent company business on occupational credit union behaviour 1986 the effects of parent company business on occupational credit union behaviour applied economics vol 18 no 12 pp 1311 1321

the demand for and supply of deposits by credit unions the caisses populaires case reply and comments abstract smith points out rightly that the symbol r refers to two different though each time well defined concepts in chateau s 1980 article in this journal his claim however that this leads to a misspecification of the theoretical model is erroneous and is refuted further it is shown explicitly under which conditions the maximization of expected utility of reserves is consistent with balance sheet growth for the caisses system acting within the quebec institutional and regulatory environment the growth cum managerial discretion model is theoretically appealing as well as supported by the available empirical evidence

the federal deposit insurance fund that didn t put a bite on u s tax payers abstract unlike the federal savings and loan insurance corporation and the bank insurance fund the national credit union share insurance fund ncusif survived the 1980s without falling into a state of accounting insolvency this paper analyzes how differences in incentive structure constrain the attractiveness of interest rate speculation and other risk taking opportunities to managers and regulators of credit unions despite these better incentives robust present value calculations establish that ncusif fell into economic insolvency during the mid 1980s besides calculating the extent of this insolvency the paper also seeks to explain why after ncusif became insolvent it could rebuild its reserves without an explicit or implicit taxpayer bailout our explanation turns on cross industry coinsurance responsibilities and the shallowness of the fund s observed insolvency relative to industry net worth we identify forces in the decisionmaking environment tending to limit the depth and duration of unresolved insolvencies at individual credit unions managerial opportunities to benefit personally from taking risks that would flow through to ncusif are constrained by difficulties in converting a credit union to stockholder form and by the intensity of proactive monitoring of troubled credit unions by sister institutions and other private coinsurers we conjecture that expanded use of coinsurance and private monitoring could reduce taxpayer loss exposure elsewhere in government deposit insurance systems