Performance and growth among de novo subchapter-s banks

Russell Kashian (), Ronald Tittle (), Richard Cummings () and Peter Westort ()
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Russell Kashian: University of Wisconsin Whitewater
Ronald Tittle: University of Wisconsin Whitewater
Richard Cummings: University of Wisconsin Whitewater
Peter Westort: University of Wisconsin Oshkosh

Economics Bulletin, 2018, vol. 38, issue 4, 2353-2361

Abstract: Prior research suggests that shareholder limitations under Subchapter S (Sub-S) status enhance performance but result in slow growth. A sample of up to 882 de novo banks, started between 2001 and 2014 and lasting at least two years, is used to test how early the performance and growth effects appear. Testing uses cross-sectional regressions for performance and growth separately for two years, then three, and so forth up to seven years after bank start-up. During this period, positive performance effects appear early and tend to remain, while negative growth effects tend to be both weaker and appear later in the life-cycle of the bank.

Keywords: Subchapter S banks; C-corporation; Asset growth; Equity growth; Community banks, Financial Intermediation, De Novo (search for similar items in EconPapers)
JEL-codes: G2 M2 (search for similar items in EconPapers)
Date: 2018-12-10
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