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Comparative performance of UK mutual building societies and stock retail banks: further evidence: a comment

Author

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  • Batiz-Lazo, Bernardo
  • Billings, Mark

Abstract

Shiwakoti et al. (2008) concluded that four of the largest UK mutual societies which converted to listed bank status in 1997 outperformed, on a variety of measures, those societies which did not convert in the four-year periods both before and after conversion. All four converting societies have since been subject to ownership change, suggesting that this out-performance failed to persist, or was perhaps illusory. We do not criticise the results obtained by the authors, but suggest that they leave unanswered important questions, such as how to measure ‘superior’ performance and the appropriate time frame over which to evaluate this.

Suggested Citation

  • Batiz-Lazo, Bernardo & Billings, Mark, 2009. "Comparative performance of UK mutual building societies and stock retail banks: further evidence: a comment," MPRA Paper 21171, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:21171
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    File URL: https://mpra.ub.uni-muenchen.de/21171/1/MPRA_paper_21171.pdf
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    References listed on IDEAS

    as
    1. Haynes, Michelle & Thompson, Steve, 1999. "The productivity effects of bank mergers: Evidence from the UK building societies," Journal of Banking & Finance, Elsevier, vol. 23(5), pages 825-846, May.
    2. Catherine Schrand & Haluk Unal, 1998. "Hedging and Coordinated Risk Management: Evidence from Thrift Conversions," Journal of Finance, American Finance Association, vol. 53(3), pages 979-1013, June.
    3. Radha K. Shiwakoti & John K. Ashton & Kevin Keasey, 2004. "Conversion, Performance and Executive Compensation in UK Building Societies," Corporate Governance: An International Review, Wiley Blackwell, vol. 12(3), pages 361-370, July.
    4. Valnek, Tomas, 1999. "The comparative performance of mutual building societies and stock retail banks," Journal of Banking & Finance, Elsevier, vol. 23(6), pages 925-938, June.
    5. Thompson, Steve, 1997. "Takeover activity among financial mutuals: An analysis of target characteristics," Journal of Banking & Finance, Elsevier, vol. 21(1), pages 37-53, January.
    6. Radha K. Shiwakoti & Kevin Keasey & Robert Hudson, 2008. "Comparative performance of UK mutual building societies and stock retail banks: further evidence," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 48(2), pages 319-336, June.
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    More about this item

    Keywords

    Building societies; Banks; Demutualization; Performance; UK;
    All these keywords.

    JEL classification:

    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-
    • N84 - Economic History - - Micro-Business History - - - Europe: 1913-
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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