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PurposeThe purpose of this paper is to better understand the differences between community and non-community banks (CBs and Non-CBs) in the US. As the former have been declining in numbers, previous literature shows inherent differences between the business models of CBs and Non-CBs. This study attempts to gauge whether the impact of the reserve elimination during the Covid pandemic affected all banks similarly or whether community banks showed a differentiated response.Design/methodology/approachOn March 26, 2020, the Federal Reserve, at the onset of the Covid pandemic, altered the depository institution reserve requirement for the first time since 1992. This significant change in policy led to the reserve requirement reduction from 10% to 0%. This study examines the impact of the 2020 reserve elimination on all community banks and non-community banks in the US and finds that although the level of cash to assets increased at both types of depository institutions post reserve elimination, the impact on liquidity-focused ratios was more pervasive at community banks in the first quarter post the regulatory shift. Among community banks, the largest depository institutions experienced the biggest balance sheet adjustments in the June 2020 quarter that followed the change in Federal Reserve’s policy. Further, the study finds that over two-quarters post reserve elimination, the non-community banks demonstrate a greater increase in balance sheet liquidity. Past literature shows that community banks tend to carry more liquidity than non-community banks and small community banks tend to carry more liquidity than their larger counterparts. These previous findings may provide some explanation for the different speed documented in this study at which various banks have reacted to the reserve elimination in 2020.FindingsThis research finds that community banks had a quicker response to the change in the reserve elimination, showing quick increases across liquidity ratios. The larger non-community banks tended to play catch up, increasing their liquidity in the subsequent quarter. The study also shows that the changes in liquidity were initially driven by the segment of large community banks.Originality/valueThis study looks at how the reserve elimination enacted by the Federal Reserve in March 2020 in response to the Covid pandemic affected community versus non-community banks. Currently, as far as the authors know, there are no other published papers that look at this issue.

The relationships among market orientation, service quality and business profitability are explored in Taiwan's security brokerage service industry. The research results show that there are positive associations among the three constructs. Further examinations reveal that market orientation has a stronger effect on service quality than on business profitability.

This research examines the performance of U.S. commercial banks leading up to the Great Recession and in the years post October 2008 government bailout of the banking system. Of particular interest was to investigate whether the government rescue augmented the level of moral hazard on the part of bank executives or, on the contrary, resulted in reduction of risk in the financial services industry. By looking at key bank performance metrics, this research also analyzes whether bank behavior was affected by the Fed monetary policy stance (restrictive or expansive) during 2000-2017 examination period. Furthermore, this study looks into the impact of Dodd-Frank Wall Street Reform and Consumer Protection Act on bank performance. The results indicate that post 2008 bailout and 2010 passage of DoddFrank, U.S. commercial banks became more conservative in management of liquidity, risk, and capital. This research does not find evidence of increased moral hazard post financial crisis. Furthermore, in the same period, banks have become more efficient and boosted their dependence on core deposits as opposed to purchased funding.

Explores the effect of market orientation on operating effectiveness and cost efficiency using data drawn from automotive distribution channels in Finland and Poland. The results indicate that market orientation is positively associated with measures of effectiveness such as service quality and overall customer service level. Market orientation also has a positive influence on measures of cost efficiency, such as productivity and sales per employee. In addition, profitability measures were highly associated with operating effectiveness and cost efficiency. Additional analysis suggests that market orientation has a greater effect on operating effectiveness, such as service quality, in Poland, a less‐developed country, than in Finland, a more‐developed country. Based on the findings, important managerial and research implications are proferred.

In a supplier-dominated channel system, how a supplier manages the channel has profound influence on its retailers' overall operations. The effect of supplier channel management behavior on retailers' market orientation and overall business performance is examined in the context of automotive supplier-dealer relationship. Investigating the effect of channel management behavior along three dimensions, directive, participative, and supportive, the results support that the participative and supportive management styles have a positive effect on market orientation. Further analysis shows that both supplier management leadership and market orientation are linked to various perceptual, productivity, volume, and profit performance measures. The results offer important managerial implications and future research directions.

Since early 1990s, tremendous growth of e-commerce has transformed the world retail infrastructure rapidly. Although the Internet burst between 2000 and 2002 which slowed down the rage in the financial market, the Internet infrastructure continues to grow and becomes an integral part of market strategic portfolio for many organizations. In order to be successful in the Internet niche, many retailers engage in business model reengineering to keep up with changes in how customers acquire goods and services. Based on in-depth interviews and a follow-up survey, the present study depicts a common online shopping process and identifies three common online shopping components: interactivity, transaction, and fulfillment. These components and their respective factors form one's online shopping experience. Managerial implications and future research directions are offered.

Although community banks hold a small proportion of U.S. banking assets and market share, they perform a crucial function in the U.S. economy by offering vital financial services to businesses and individuals in regions where major banks do not operate. Their diseconomies of scale put them at a competitive disadvantage in relation to large, national commercial banks when coping with digital transformation and regulatory requirements. These challenges mounted after the Great Recession. This research, with the usage of four key financial ratio categories and the implementation of logit regression, looks into how U.S. community banks evolved in the aftermath of the financial crisis, 2009-2017. It divides the entire sample period into two sub-sample periods, 2009-2012 and 2013-2017, and comparing community banks with their larger counterpart and within the community bank sector between the largest and the smallest asset size quartiles of the group. This study, to the best of our knowledge, represents the only known research at the time of publication that compares recovery of banks post the Great Recession based on whether they are community or non-community banks. It finds that community banks tended to recover more slowly in terms of the bottom line, ROE, after the Great Recession than large national banks. Additionally, community banks are more likely to carry even less capital than their national counterparts in the later time period as compared with the earlier time period. In contrast, banks with higher liquidity and greater operating efficiency are more associated with community banks than non-community banks. Also, the empirical findings posit that size matters, to a certain extent. That is, while size does not command an absolute advantage, a certain threshold may be necessary for a bank to stay competitive. This provides a rationale for mergers and acquisitions taking place in the banking sector.

This study examines the performance of mutual funds under different Central Bank of China monetary policy environments in the emerging Taiwan market. To measure monetary policy changes effectively, we exploit changes in the discount rate and further categorize the monetary environment as either restrictive or expansive. We consider a restrictive monetary environment to be a period in which the discount rate rises, whereas an expansive monetary condition is a period in which the discount rate drops. It is found that all mutual funds, both domestic and international funds, exhibit a higher mean return, lower risk, and higher Sharpe and Treynor ratios under expansive monetary policy environments. Regression results show that domestic mutual fund returns are related significantly to local monetary policy. Furthermore, after controlling for the possible effect of macro factors on the association between the monetary policy dummy variable and mutual fund returns, the significant influence of monetary policy on domestic mutual fund returns remains robust. In contrast, changes in U.S. monetary policy stringency, in general, do not affect the performance of either domestic or international mutual funds in Taiwan.