caa a22 4500 465802826 CHVBK 20180323112056.0 cr unu---uuuuu 170327e19900701xx s 000 0 eng 10.1007/BF00352567 doi (NATIONALLICENCE)springer-10.1007/BF00352567 The effects of mutual to stock conversions of thrift institutions on managerial behavior [Elektronische Daten] [Richard Carter, Roger Stover] Considerable discussion has surrounded the mutual versus the stock form of organizational structure for savings and loan associations (SLAs). Masulis (1987) found that conversion from a mutual to a stock organization yields abnormal returns for stockholders. The effect of conversion on management behavior, however, was not examined. In this study, the impact on management behavior is tested for conversions during the years 1985 and 1986. Using path analysis, we examine the direct effect of conversion on return on equity as well as the indirect effects due to altered management behavior. While a direct relationship between conversion and return on equity is observed, the results also suggest that conversion itself does not equally affect the expense preference behavior and risk-taking propensity of management. To examine the issue of managerial behavior effectively, we test the relationship between the new stock issued to the management of the converting SLA and managerial behavior. Above the levels of ownership identified by a switching regression model, expense preference behavior increases and risk-taking propensity decreases. The results suggest that the benefits of conversion and increased ownership control on managerial behavior have been at least partially offset by the exercising of subscription rights by existing management. Kluwer Academic Publishers, 1990 Carter Richard Department of Finance, College of Business Administration, Iowa State University, 50011-2065, Ames, IA, USA aut Stover Roger Department of Finance, College of Business Administration, Iowa State University, 50011-2065, Ames, IA, USA aut Journal of Financial Services Research Kluwer Academic Publishers 4/2(1990-07-01), 127-144 0920-8550 4:2<127 1990 4 10693 https://doi.org/10.1007/BF00352567 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/BF00352567 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Carter Richard Department of Finance, College of Business Administration, Iowa State University, 50011-2065, Ames, IA, USA aut NATIONALLICENCE 700 1- Stover Roger Department of Finance, College of Business Administration, Iowa State University, 50011-2065, Ames, IA, USA aut NATIONALLICENCE 773 0- Journal of Financial Services Research Kluwer Academic Publishers 4/2(1990-07-01), 127-144 0920-8550 4:2<127 1990 4 10693 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer