Financial Regulation and Economic Performance: A Descriptive Correlation Study of American Financial Institutions

Financial Regulation and Economic Performance: A Descriptive Correlation Study of American Financial Institutions

Author: 
Leslie E. Lynch
Program of study: 
D.B.A.
Abstract: 
The purpose of this descriptive correlation study with a logistic regression analysis was to examine the relationship between SEC regulatory compliance or malfeasance and the economic performance of American, publicly traded financial institutions from 2005 through 2010. The research study examined three research questions. The research questions addressed the relationship between a company’s financial performance and associated regulatory malfeasance or compliance as well as the type and volume of regulatory violations. Three predictor variables were operationalized as follows: (a) regulatory compliance or malfeasance, (b) the type of malfeasance, and (c) the volume of malfeasance. The study researched 74 publicly traded financial institutions categorized under SIC 6211. The results demonstrated that (a) neither regulatory compliance nor malfeasance were statistically related to the financial performance of the financial institutions, and (b) no significant relationship exists between the volume or type of regulatory malfeasance and the financial performance of the institutions researched. A statistically significant relationship (p-value=0.054) was uncovered between one specific type of regulatory violation and financial performance. Companies with violations categorized as irresponsible or unfair treatment of customers reported the weakest financial performance. The results were determined using several statistical methods of analysis.
Dedication: 
This accomplishment is dedicated to my husband who patiently endured too many lonely weekends, to my father and mother who taught me that hard work always pays off, and to my sons who kept me grounded.
Acknowledgements: 
Thank you to my dissertation chair, Dr. Barbara Fedock for her guidance and unbelievably positive encouragement throughout this journey. Thank you to my committee members, Drs. Kofi Amoateng and Gerald Wiesenseel. Special mention is offered to a fellow doctoral student, Robin Laukhuf, for her collaboration and ‘ear.’