Antecedents of failure for newly chartered banks in the U.S. banking industry

Group and Organization Management

Volumn 35, Issue 5, 2010, Pages 666-695

  DeVaughn, Michael L ^a   Leary, Myleen M ^b  

^a UNIVERSITY OF ST THOMAS   (United States)

^b MONTANA STATE UNIVERSITY   (United States)

Author keywords

bank failure; founding team experience; organizational distress; ownership concentration

Indexed keywords

EID: 77958000532     PISSN: 10596011     EISSN: 15523993     Source Type: Journal    
DOI: 10.1177/1059601110381495     Document Type: Article

References (62)

1. Argote, L., McEvily, B., & Reagans, R. (2003). Managing knowledge in organizations: An integrative framework and review of emerging themes. Management Science, 49, 571-582.
2. Austin, J.R. (2003). Transactive memory in organizational groups: The effects of content, consensus, specialization, and accuracy on group performance. Journal of Applied Psychology, 88, 866-878.
3. Bandell, B. (2010, March 12). FDIC post-mortem cites squabbling directors, executive vacancies and lax oversight at Integrity Bank. South Florida Business Journal. Retrieved August 18, 2010, from http://southflorida.bizjournals.com/southflorida/stories/2010/03/15/story1.html?page=3.
4. Bantel, K.A. (1993). Top team, environment, and performance effects on strategic planning formality. Group & Organization Management, 18, 436-458.
5. Bantel, K.A. (1994). Strategic Planning Openness: The role of top team demography. Group & Organization Management, 19, 406-424.
6. Bantel, K.A., & Jackson, S.E. (1989). Top management and innovations in banking: Does the composition of the top team make a difference? Strategic Management Journal, 10, 107-124.
7. Beckman, C.M. (2006). The influence of founding team company affiliations on firm behavior. Academy of Management Journal, 49, 741-758.
8. Blau, P.M. (1977). Inequality and heterogeneity: A primitive theory of social structure. New York: Free Press.
9. Carmeli, A. (2008). Top management team behavioral integration and the performance of service organizations. Group & Organization Management, 33, 712-735.
10. Carpenter, M.A., Geletkanycz, M.A., & Sanders, W.G. (2004). Upper echelons research revisited: Antecedents, elements, and consequences of top management team composition. Journal of Management, 30, 749-778.
11. Certo, S.T., Lester, R.H., Dalton, C.M., & Dalton, D.R. (2006). Top management teams, strategy and financial performance: A meta-analytic examination. Journal of Management Studies, 43, 813-839.
12. Child, J. (1972). Organizational structure, environment, and performance: The role of strategic choice. Sociology, 6, 1-22.
13. Cooper, A.C., & Bruno, A.V. (1977). Success among high-technology firms. Business Horizons, 20, 16-22.
14. Delmar, F., & Shane, S. (2006). Does experience matter? The effect of founding team experience on the survival and sales of newly founded ventures. Strategic Organization, 4, 215-247.
15. Demsetz, H. (1983). The structure of the ownership and the theory of the firm. Journal of Law & Economics, 26, 375-390.
16. DeVaughn, M.L., & Leary, M.M. (2010). Antecedents of failure for newly chartered banks in the U.S. banking industry. Group & Organization Management, pp, 1-30.
17. DeYoung, R. (2000). For how long are newly chartered banks financially fragile? (FRB Working Paper Series 1-41). Chicago: Federal Reserve Bank of Chicago.
18. Earle, J.S., Kucsera, C., & Telegdy, A. (2005). Ownership concentration and corporate performance on the Budapest Stock Exchange: Do too many cooks spoil the goulash? Corporate Governance: An International Review, 13, 254-264.
19. Edwards, B.D., Day, E.A., Arthur, W., & Bell, S.T. (2006). Relationships among team ability composition, team mental models, and human performance. Journal of Applied Psychology, 91, 727-736.
20. Eisenhardt, K.M., Kahwajy, J.L., & Bourgeois, L.J. (1997). How management teams can have a good fight. Harvard Business Review, 75, 77-85.
21. Eisenhardt, K.M., & Schoonhoven, C.B. (1990). Organizational growth: Linking founding team, strategy, environment, and growth among U.S. semiconductor ventures 1978-1988. Administrative Science Quarterly, 35, 504-529.
22. Fama, E.F. (1980). Agency problems and the theory of the firm. Journal of Political Economy. 88, 288-307.
23. Fama, E.F., & Jensen, M.C. (1983). Agency problems and residual claims. Journal of Law and Economics, 26, 327-349.
24. Finkelstein, S. (1992). Power in top management teams: Dimensions, measurement, and validation. Academy of Management Journal, 35, 505-538.
25. Hambrick, D.C., & D'Aveni, R.A. (1992). Top team deterioration as part of the downward spiral of large corporate bankruptcies. Management Science, 38, 1445-1466.
26. Hambrick, D.C., & Mason, P.A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9, 193-206.
27. Hannan, M., & Carroll, G. (1992). Dynamics of organizational populations: Density, legitimation, and competition. New York: Oxford University Press.
28. Hannan, M., & Freeman, J. (1989). Organizational ecology. Cambridge, MA: Harvard University Press.
29. Harrison, D.A., & Klein, K.J. (2007). What's the difference? Diversity constructs as separation, variety, or disparity in organizations. Academy of Management Review, 22, 1199-1228.
30. Heirman, A., & Clarysse, B. (2007). Which tangible and intangible assets matter for innovation speed in start-ups? Journal of Product Innovation Management, 24, 303-315.
31. Hickson, D.J., Lee, C.A., Schneck, R.E., & Pennings, J.M. (1971). A strategic contingencies theory of interorganizational power. Administrative Science Quarterly, 16, 216-229.
32. Hsu, D.H. (2007). Experienced entrepreneurial founders, organizational capital, and venture capital funding. Research Policy, 36, 72-741.
33. Janis, I.L. (1971). Groupthink. Psychology Today, 5, 44-76.
34. Jensen, M.C., & Meckling, W.H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305-360.
35. Kabanoff, B., & Brown, S. (2008). Knowledge structures of prospectors, analyzers, and defenders: Content, structure, stability, and performance. Strategic Management Journal, 29, 149-171.
36. Kaplan, S., Murray, F., & Henderson, R. (2003). Discontinuities and senior management; Assessing the role of recognition in pharmaceutical firm response to biotechnology. Industrial and Corporate Change, 12, 203-233.
37. Kim, J.Y., Kim, J., & Miner, A.S. (2009). Organizational learning from extreme performance experience: The impact of success and recovery experience. Organization Science, 20, 958-978.
38. Kim, J., & Miner, A.S. (2007). Vicarious learning from the failure and near-failure of others. Evidence from the U.S. commercial banking industry. Academy of Management Journal, 50, 687-714.
39. Kirchmeyer, C., & Cohen, A. (1992). Multicultural groups: Their performance and reactions with constructive conflict. Group & Organization Management, 17, 153-170.
40. Leary, M.M., & DeVaughn, M.L. (2009). Entrepreneurial team characteristics that influence the successful launch of a new venture. Management Research News, 32, 567-579.
41. Mellahi, K., & Wilkinson, A. (2004). Organizational failure: A critique of recent research and a proposed integrative framework. International Journal of Management Reviews, 5/6(1), 21-41.
42. Mintzberg, H. (1983). Power in and around organizations. Englewood Cliffs, NJ: Prentice-Hall.
43. Oshinsky, R., & Olin, V. (2006). Troubled banks: Why don't they all fail? FDIC Banking Review, 18, 23-44.
44. Peters, L., & Karren, R.J. (2009). An examination of trust and functional diversity on virtual team performance ratings. Group & Organization Management, 34, 479-504.
45. Pfeffer, J. (1981). Power in organizations. Marshfield, MA: Pitman.
46. Pfeffer, J., & G.R. Salancik. (1978). The external control of organizations. New York: Harper and Row.
47. Reagans, R., Argote, L., & Brooks, D. (2005). Individual experience and experience working together: Predicting learning rates from knowing who knows what and knowing how to work together. Management Science, 51, 869-881.
48. Reagans, R.E., Zuckerman, E.W., & McEvily, B. (2004). How to make the team: Social networks vs. demography as criteria for designing effective projects in a contract R&D firm. Administrative Science Quarterly, 49, 101-133.
49. Rentsch, J.R., & Klimoski, R.J. (2001). Why do great minds think alike? Antecedents of team member schema agreement. Journal of Organizational Behavior, 22, 107-120.
50. Schoonhoven, C.B., Eisenhardt, K.M., & Lyman, K. (1990). Speeding products to market: Waiting time to first product introduction in new firms. Administrative Science Quarterly, 35, 177-207.
51. Shane, S., & Stuart, T. (2002). Organizational endowments and the performance of university start-ups. Management Science, 48, 154-170.
52. Stinchcombe, A.L. (1965). Social structures and organizations. In J. G. March (Ed.), Handbook of organizations (pp. 142-193). Chicago: Rand McNally.
53. Sutcliffe, K.M., & Huber, G. (1998). Firm and industry as determinants of executive perceptions of the environment. Strategic Management Journal, 19, 793-807.
54. Talaulicar, T., Grundei, J., & Werder, A.V. (2005). Strategic decision making in start-ups: The effect of top management team organization processes on speed and comprehensiveness. Journal of Business Venturing, 20, 519-541.
55. Trubey, J.S. (2009, September 23). Audit: Freedom Bank grew too fast before failure, regulators too slow. Atlanta Business Chronicle. Retrieved August 18, 2010, from http://atlanta.bizjournals.com/atlanta/stories/2009/09/21/daily64.html.
56. Tung, R. (1979). Dimensions of organizational environments: An exploratory study of their impact on organizational structure. Academy of Management Journal, 22, 672-693.
57. Van de Ven, A.H., Hudson, R., & Schroeder, D.M. (1984). Designing new business start-ups: Entrepreneurial, organizational, and ecological considerations. Journal of Management, 10, 87-107.
58. Wegner, D.M., Raymond, P., & Erber, R. (1991). Transactive memory in close relationships. Journal of Personality & Social Psychology, 61, 923-929.
59. Weitzel, W., & Jonsson, E. (1989). Decline in organizations: A literature integration and extension. Administrative Science Quarterly, 34, 91-109.
60. Welbourne, T.M., & Cyr, L.A. (1999). Using ownership as an incentive: Does the too many chiefs rule apply in entrepreneurial firms? Group & Organization Management, 24, 438-460.
61. Whetten, D.A. (1980). Organizational decline: sources, responses and effects. In J. Kimberly & R. Miles (Eds), Organizational life cycles (pp. 342-374). San Francisco: Jossey-Bass.
62. Zheng, Y., DeVaughn, M.L., & Zellmer-Bruhn, M.E. (2007). The influence of founding team prior shared experience on new venture performance: A contingent view (Working Paper). Philadelphia: Academy of Management Meetings.