Abstract: A Multivariate Analysis of Stock versus Mutual Performance in the Savings and Loan Industry

Abstract

The purpose of this paper is to compare the performance of stocks and mutual savings and loan associations. Since the philosophies underlying stocks and mutuals supposedly differ, assertions are often made that operational differences also exist. The profit motive is presumed to dominate the operations of stock associations while mutual associations are said to be operated more in the interest of the general public. As the pressure to allow more conversions increases, the question of whether significant differences in operating characteristics exist becomes increasingly important.