The financial crisis of 2008 provides evidence for the instability of the conventional banking system. Social banks may present a viable alternative for conventional banks. This paper analyzes the performance of social banks related to the bank business model, economic efficiency, asset quality and stability by comparing social banks with banks where the difference is likely to be large, namely with the 30 global systemically important banks (GSIBs) of the Financial Stability Board over the period [2000][2001][2002][2003][2004][2005][2006][2007][2008][2009][2010][2011][2012][2013][2014]. We also analyze the relative impact of the global financial crises on the bank performance. The performance of social banks and G-SIBs is surprisingly similar.
This is the accepted version of the paper.This version of the publication may differ from the final published version. We would like to thank the Editor and two anonymous referees for their very valuable comments that improved the paper significantly. We are also grateful to Anton Andrianov and to Dragon Capital for permission to use their data.
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We analyse the impact of ownership and corporate control on firms’ investment using the 2001 survey of Yacoub et al. on Ukrainian firms. The model explains investment by output, financial and soft budget constraints, and corporate control (and ownership) categories potentially enjoying private benefits of control. We find that the corporate control model fits better than the ownership model, a negative relationship between state and employee control and firms’ investment, and evidence for the presence of soft budget constraints. A negative relationship between firms’ investment and the relative size of non‐monetary transactions strengthens the conclusion of private benefits of control impacting investment.
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