Dr. Kate Campbell, Dr. Cullen Goenner, and Dr. Matthew Notbohm paper accepted in the Review of Quantitative Finance and Accounting
Please join us in congratulating Dr. Kate Campbell (Department of Accountancy), Dr. Cullen Goenner (Department of Economics and Finance), and Dr. Matthew Notbohm (Department of Accountancy) on their paper published in the Review of Quantitative Finance and Accounting.
Title: Political ideology and CEO performance under crisis
Journal: Review of Quantitative Finance and Accounting
Authors: Dr. Katherine Campbell (Department of Accountancy – UND), Dr. Cullen Goenner (Department of Economics and Finance-UND), Dr. Matthew Notbohm (Department of Accountancy-UND), and Dr. Adam Smedema (Department of Finance – University of Wisconsin-Madison)
Abstract: Management quality is known to influence depository institution performance, but less understood are the characteristics of managers that influence performance. We empirically examine how the political ideology of a credit union’s CEO influenced decision making and performance during the financial crisis. Our results indicate that the return on assets of credit unions run by conservative CEOs are 22 basis points lower during the crisis relative to liberal CEOs. Returns are shown to be lower as a direct result of credit unions with conservative CEOs applying more conservative accounting practices for loan losses than their counterparts during the crisis, despite similar loan quality.