| Sumario: | A study examined whether organizations with different collectivized agency arrangements have different survival prospects. It is proposed that the structure of monitoring and incentive systems determines the agency costs of collectivized agencies and, thus, their vulnerability to competition and environmental variability. Information on 900 mutual and stock savings and loan associations (SLAs) that were founded between 1960 and 1987 were analyzed. Findings indicate that mutual SLAs are more vulnerable than stock SLAs to competition from commercial banks, but there is no conclusive evidence that mutual SLAs are more susceptible to environmental variability than are stock SLAs. Moreover, deregulation sharply attenuates the agency advantages of stocks, suggesting that agency-cost advantages may be constrained by institutional processes.
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