US Credit Unions: Survival, Consolidation and Growth

34 Pages Posted: 16 Jan 2011 Last revised: 8 Aug 2012

See all articles by John Goddard

John Goddard

University of Wales System - Bangor University

Donal G. McKillop

Queen's University Management School

John O. S. Wilson

University of St. Andrews

Date Written: August 7, 2012

Abstract

This paper uses hazard function estimations together with cross-sectional growth regressions to examine the impact of exit through merger and acquisition (M&A) or failure, and internally-generated growth, on the firm-size distribution of the US credit union industry. Consolidation through M&A was the principal cause of a reduction in the number of credit unions, but impact on concentration was small. A positive relationship between size and growth, and a pattern of positive persistence in growth, reflects a divergence in the population size distribution. Divergence between average internally-generated growth of smaller and larger credit unions was the principal driver of the rise in concentration.

Keywords: Acquisition, Credit Unions, Entry, Exit, Failure, Gibrat’s Law

JEL Classification: G21

Suggested Citation

Goddard, John and McKillop, Donal G. and Wilson, John O. S., US Credit Unions: Survival, Consolidation and Growth (August 7, 2012). Available at SSRN: https://ssrn.com/abstract=1741243 or http://dx.doi.org/10.2139/ssrn.1741243

John Goddard

University of Wales System - Bangor University ( email )

Bangor, Gwynedd, Wales LL57 2DG
United Kingdom

Donal G. McKillop

Queen's University Management School ( email )

25 University Square
Belfast, Northern Ireland BT7 1NN
Northern Ireland

John O. S. Wilson (Contact Author)

University of St. Andrews ( email )

North St
Saint Andrews, Fife KY16 9AJ
United Kingdom

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