Survival and failure of Brazilian credit unions: an analysis of corporate governance characteristics

Authors

DOI:

https://doi.org/10.5902/2359043241128

Keywords:

Credit unions, Corporate governance, Discontinuity

Abstract

We aim in this paper to understand the link between corporate governance characteristics and the discontinuity of Brazilian credit unions, investigating if these characteristics affect their strategy of exiting the market. The information on the discontinuity was collected at the Brazilian Central Bank, and corporate governance variables, such as duality and board size, for instance, were withdrawn from bylaw then-current in 2016. The final sample comprises 44 discontinued and 1,006 continued credit unions. Additionally, we perform tests to verify the statistical differences between those groups. Despite finding statistical differences in some of the corporate governance characteristics, it is noteworthy that age and size seem to have a greater effect on the discontinuity. Moreover, apparently, the cost of compliance imposed by regulatory bodies might influence the credit unions in different ways. This suggests possibilities for further research on this topic, such as the role of member heterogeneity on corporate governance structures and discontinuity.

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Author Biographies

Bruno José Canassa, Universidade de São Paulo, São Paulo, SP

Mestre em Controladoria e Contabilidade Financeira pela Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto da Universidade de São Paulo. Graduado em Ciências Contábeis pela mesma universidade.

Davi Rogério de Moura Costa, Universidade de São Paulo, São Paulo, SP

Graduação em Engenharia Agronomica pela Escola Superior de Agricultura ´Luiz de Queiroz´ (1998), Mestrado em Economia Aplicada pela mesma Escola em 2005 e adquire meu Doutorado em Economia na Escola de Economia de São Paulo da Fundação Getúlio Vargas (EESP/FGV) em 2010. Atualmente sou Professor Doutor na Faculdade de Administração, Economia e Contabilidade da USP em Ribeirão Preto e Coordenador da Rede de Estudos em Cooperativas - RECoop 

Mateus de Carvalho Reis Neves, Universidade Federal de Viçosa, Viçosa, MG

Graduação em Gestão de Cooperativas pela Universidade Federal de Viçosa (2010), mestrado em Economia Aplicada pela Universidade Federal de Viçosa (2012) e doutorado em Economia Aplicada pela Universidade Federal de Viçosa (2016). Atualmente é professor do magistério superior da Universidade Federal de Viçosa.

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Published

2020-05-19

How to Cite

Canassa, B. J., Costa, D. R. de M., & Neves, M. de C. R. (2020). Survival and failure of Brazilian credit unions: an analysis of corporate governance characteristics. Revista De Gestão E Organizações Cooperativas, 7, 48–62. https://doi.org/10.5902/2359043241128

Issue

Vol. 7 (2020): Edição Especial: 5º Encontro Brasileiro de Pesquisadores em Cooperativismo

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