Sub-Optimal Risk–Return Profiles in Private Equity:<i>The Case of Minority Business Enterprises Investing</i>

Demaria, Cyril

doi:10.3905/jpe.2011.2011.1.014

Cited by 2 publications

(2 citation statements)

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“…However, Demaria () reanalyses the data used by Bates and Bradford, and finds a negative correlation, with minority businesses generating higher risks and lower rewards. That finding fits Brimmer's () claim that the more BlkBs provided for under‐served communities, the more likely they are to fail.…”

Section: What Do Mobs Do?mentioning

confidence: 99%

“…Next consider ROA, which Brimmer (), Demaria (), and Charles‐Cadogan () suggest will be negatively correlated with NPA, so low among the MOBs as a cost of altruism or location, rather than signalling poor management. As with NPA, the connection between MOB status, location, and ROA during an earlier period (2003–2005) is tested using regression analysis, then the earlier variable is included to ascertain whether it soaks up some of the explanatory power in a failure regression.…”

Section: Bank and Mob Failuresmentioning

confidence: 99%

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Minority‐Owned Banks and Bank Failures After the Financial Collapse

Kashian

Drago²

2016

Economic Notes

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Minority‐owned banks (MOBs) are small banks, which often serve disadvantaged communities of color, and failed at high rates after the financial collapse. The U.S. Census and FDIC data are used to analyse bank failures for 2009–2014, with predictors from 2008, using logistic regression for estimation. Failure rates were high among Black and Asian American–owned banks; these are related to bank failures in African American communities and concentration in commercial real estate lending; policy responses to the collapse were generally ineffective for small banks. We conclude that policy support for MOBs operating in disadvantaged communities of color is warranted.

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Section: What Do Mobs Do?mentioning

confidence: 99%

Section: Bank and Mob Failuresmentioning

confidence: 99%