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dc.contributor.advisorNewman, Joseph A.en_US
dc.contributor.authorGarcia, Maria T.en_US
dc.date.accessioned2016-09-20T16:51:40Z
dc.date.available2016-09-20T16:51:40Z
dc.date.issued1989
dc.identifier.urihttp://commons.lib.niu.edu/handle/10843/16595
dc.description.abstractMy thesis focuses on the agency theory, but more specifically on the effect of employee ownership in banking. The agency theory states that top management is less willing to take large risks if they own stock in the company. My thesis looks at banks that employ Employee Stock Ownership Programs (ESOPs) and compares them with banks without ESOPs. In my thesis, I measure the amount of risk that banks take with 2 specific financial ratios. The equity ratio measures the amount of risk taken with respect to the bank's capital. The Loan-to-Deposit ratio measures risk with respect to loans as a percentage of deposits. My thesis also included statistical tests to find the confidence interval of the results and the correlation between the 2 risk measures. I found that there is a high correlation between the two measures in ESOP banks. I also found that ESOP banks tend to be more risk averse when dealing in capital, as opposed to the risk taken in the amount of their loans as a percentage of deposits.en_US
dc.format.extent5 pagesen_US
dc.language.isoen_USen_US
dc.publisherNorthern Illinois Universityen_US
dc.rightsNIU theses are protected by copyright. They may be viewed from Huskie Commons for any purpose, but reproduction or distribution in any format is prohibited without the written permission of the authors.en_US
dc.subjectfinanceen_US
dc.subjectESOPen_US
dc.subjectbanking industryen_US
dc.titleThe Effect of ESOPs in Bankingen_US
dc.type.genreDissertation/Thesisen_US
dc.typeTexten_US
dc.contributor.departmentDepartment of Financeen_US
dc.description.degreeB.S. (Bachelor of Science)en_US


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