Talbot, Lorraine (2010) Of insane forms. From collectives to management controlled organisations to shareholder value organisation : building societies a case study. Journal of Banking Regulation, Vol.11 (No.3). pp. 223-239. doi:10.1057/jbr.2010.10

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Abstract

In this article, I assert that when a number of the larger mutual building societies converted into PLCs, they began constructing and dealing in ‘insane forms’ of financial products. As PLCs, they adopted the normative values of the prevailing corporate governance strategies of the time, which were strongly influenced by the American originating ‘law and economics’ approach. In the context of corporations, this approach emphasised the importance of achieving high returns for shareholders, or more pithily, of achieving ‘shareholder value’. Converted societies therefore became ‘shareholder value’ organisations (SVOs), which propelled them into a business orientation that was very different from that before conversion, and to that of building societies, which continued to operate as mutual societies. As a result, the converted societies adopted practices that made them more vulnerable to changes in the wider economy, to the extent that they became central casualties of the current economic crisis.

Item Type:	Journal Article
Divisions:	Faculty of Social Sciences > School of Law
Journal or Publication Title:	Journal of Banking Regulation
Publisher:	Palgrave Macmillan Ltd.
ISSN:	1745-6452
Official Date:	2010
Dates:	Date Event 2010 Published
Volume:	Vol.11
Number:	No.3
Page Range:	pp. 223-239
DOI:	10.1057/jbr.2010.10
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access

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