The information content of litigation participation securities: the case of CalFed Bancorp
Article Abstract:
CalFed Bancorp and other savings and loan associations had been encouraged by regulators to acquire failing thrifts in the 1980s as the acquisition could create assets known as supervisory goodwill in their balance sheets. When the Financial Institutions Reform Recovery, and Enforcement Act of 1989 was passed crippling their business with restrictions, they sued the government for damages and won and if victorious on appeal, holders of their participation securities will get a fraction of the damages, which makes the company attractive for a takeover.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 2001
User Contributions:
Comment about this article or add new information about this topic:
Organizational form and risk taking in the savings and loan industry
Article Abstract:
Research was conducted on the relationship of organizational form with residual claims and risk taking. Results show that mutual thrifts were more conservative in taking risks. The conservatism is brought about by an organization's inability to sell thrift claims, due to the restrictions imposed on share transferability that decrease the incentive to maximize equity value.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
A case study of organizational form and risk shifting in the savings and loan industry
Article Abstract:
Organizational structure has been found to have a significant implication on a firm's risk-taking strategies to effect profits for shareholders. A stock thrift organization has been aggressive in its risk-taking strategy due to high inside ownership that enables day-to-day investment decisions. The stock thrift structure also creates conditions that lower transactions costs and enable easy reconfiguration of balance sheet.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The Formation of Ownership Structure of Privatized Enterprises. Is Privatization Affecting the Activity of Enterprises?
- Abstracts: The Russian economic reforms through the eyes of Western critics: the "collapse" of the Russian reforms and accusations against the reformers
- Abstracts: The open method as a new mode of governance: the case of soft economic policy co-ordination. Quota Hopping: The Common Fisheries Policy Between States and Markets
- Abstracts: Computer automation of general-to-specific model selection procedures. Consistent model selection by an automatic GETS approach
- Abstracts: Robust inflation-forecast-based rules to shield against indeterminacy. Optimal horizons for inflation targeting