The effect of common bond on credit union performance: The case of black-controlled credit unions
This article compares the financial characteristics of black-controlled credit unions by type of common bond. The study found that many of the operational differences of these credit unions can be attributed to institutional characteristics associated with the three distinct types of credit unions. It also found that black credit unions are viable financial institutions, regardless of type of common bond. This finding is linked to the ownership of credit unions by its membership. This unique relationship has implications for black economic development.
Effects of financial structure and instruments on income of low income credit unions
The effects of loan to asset ratio, investment to asset ratio, management composition and delinquency rate on income to asset ratio of low income credit unions (LICUs) were evaluated. Specific attention was given to risk income behaviours of LICUs. It was found that loan to asset ratio positively influenced the magnitude of income to asset ratio, while the investment to asset ratio had a negative effect on the income to asset ratio. LICUs that employed managers had higher incomes to asset ratios than those with volunteer managers serving in this capacity. The delinquency rate and income to asset ratio were positively related, but negatively related to delinquency rate squared indicating that when the delinquency rate increased at an increasing rate the income to asset ratio fell. LICUs portrayed three risk behavioural patterns, each associated with size or income of the organization: (1) small LICUs had high risk behaviour, (2) middle income LICUs were risk neutral, and (3) large LICUs accepted higher risks as income increased.
Contractor Failure: Analysis
The possibility exists for any construction contractor to fail to filfill the contract requirements associated with a facility. Contractor failure occurs when a contractor is unable to perform his/her contractual duties, thus requiring the facility owner to invoke the contract's nonperformance clause. This paper provides aggregate contractor business failure statistics and outlines potential causes for failure. A framework to identify and quantify the associated costs is also introduced. Several case studies are presented to examine the cause and cost of failure and the means by which the facilities were completed. Alternatives available for project completion when contractor failure occurs are discussed. Recommendations to identify and monitor contractors at high risk for failure are outlined as well. This paper provides facility owners with a greater awareness of the possibility of contractor failure, how to quantify costs of contractor failure, and avoidance techniques.