Comparative Performance of UK Mutual Building Societies and Stock Retail Banks: Further Evidence

18 Pages Posted: 13 May 2008

See all articles by Radha K. Shiwakoti

Radha K. Shiwakoti

University of Kent - Canterbury Business School

Kevin Keasey

University of Leeds - Division of Accounting and Finance

Robert Hudson

Hull University Business School (HUBS)

Abstract

The purpose of this paper is to extend the literature on the comparative performance of mutual and stock retail banks by examining a unique episode in the history of financial services; namely, when four of the largest UK building societies (accounting for approximately 60 per cent of the industry's assets) demutualized to public limited company status in 1997. The episode allows us to consider the relative performance of the same businesses under different organizational forms. The results contrast starkly with previous findings and cast doubt on the hypothesis that mutuals generally outperform stock retail banks and indeed the idea that mutuals can be regarded as a homogeneous group of institutions.

Suggested Citation

Shiwakoti, Radha K. and Keasey, Kevin and Hudson, Robert, Comparative Performance of UK Mutual Building Societies and Stock Retail Banks: Further Evidence. Accounting & Finance, Vol. 48, No. 2, pp. 319-336, June 2008, Available at SSRN: https://ssrn.com/abstract=1131468 or http://dx.doi.org/10.1111/j.1467-629X.2007.00244.x

Radha K. Shiwakoti (Contact Author)

University of Kent - Canterbury Business School ( email )

Canterbury, Kent CT2 7NZ
United Kingdom

Kevin Keasey

University of Leeds - Division of Accounting and Finance ( email )

Leeds LS2 9JT
United Kingdom
+44 (0)113 343 2618 (Phone)

Robert Hudson

Hull University Business School (HUBS) ( email )

Hull, HU6 7RX
United Kingdom

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