Life cycle of Brazilian credit unions: the cooperative’s performance as a reason for the discontinuity of operations

Authors

  • Bruno José Canassa Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto da Universidade de São Paulo
  • Davi Rogério de Moura Costa Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto da Universidade de São Paulo

DOI:

https://doi.org/10.5902/2359043230202

Keywords:

credit unions, discontinuity, financial indicators, cooperative life cycle theory

Abstract

It is possible to observe a recent wave of discontinuity among the Brazilian credit unions. According to the cooperative life cycle theory, the decision to discontinue the activities is determined by the "financial health" of the member and the cooperative itself. Therefore, we aimed in this paper to explore the role of performance in the decision to discontinue the cooperative. To achieve this goal, we found a series of prominent indicators for credit unions and which of these indicators presented statistical differences between the continued and the discontinued. In order to understand if the low performance affected the decision to end the activities, we identified the frequency in which discontinued cooperatives presented performance below the others. The main indicators identified are related to the quality of credit contracts and the generation of resources by the cooperative, being linked to problems encountered in the life cycle phases such as membership growth, the disincentive to investment and management decision-making problems.

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References

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Published

2018-05-10

How to Cite

Canassa, B. J., & Costa, D. R. de M. (2018). Life cycle of Brazilian credit unions: the cooperative’s performance as a reason for the discontinuity of operations. Revista De Gestão E Organizações Cooperativas, 51–68. https://doi.org/10.5902/2359043230202

Issue

2018: Revista de Gestão e Organização de Cooperativas

Section

EBPC

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