The Dominance of Borrowers and Savers Credit Unions

Authors

  • Mário Nazzari Westrup Programa de Pós-graduação em Desenvolvimento Socioeconômico-PPGDS e Criciúma, Santa Catarina, Brazil https://orcid.org/0000-0001-5917-1283
  • Silvio Parodi Oliveira Camilo Programa de Pós-graduação em Desenvolvimento Socioeconômico-PPGDS e Programa de Pós-graduação em Sistemas Produtivos -PPGSP, Criciúma, Santa Catarina, Brazil

DOI:

https://doi.org/10.14738/assrj.99.13215

Keywords:

Agency theory; Conflict of interests; Analysis of domination; Principal-principal conflict.

Abstract

This paper addresses the determinants of dominance by resource borrowers or savers in credit unions in the southern region of Brazil. The study is a prevalence of previous and convergent work that discuss the dominance and its effects. In order to evaluate the influence of the determining factors on credit unions about the type of domination, we adopted panel date the multivariate analysis technique. The results of the study pointed out that the objects investigated present dominance of members who are credit borrowers, and present determinant factors that are significant and that influence the rate of domination of the borrower. The proposition becomes relevant by contributing with empirical evidence already existing in other contexts. Given the growing participation of credit unions in the economy, and their impact on local development. Conflict of interests of the participants allied to the analysis of an environmental, balanced or turbulent context, can influence the movements, policies or group arrangements. Investigations that deal with decisions and power relations between quota holders, whether as board members or even managers, in a dual or trial function appearing to be important in future studies.

Author Biography

Mário Nazzari Westrup, Programa de Pós-graduação em Desenvolvimento Socioeconômico-PPGDS e Criciúma, Santa Catarina, Brazil

 

 

References

Almehdawe, E., Khan, S., Lamsal, M. and Poirier, A. (2021), "Factors affecting Canadian credit unions' financial performance", Agricultural Finance Review, Vol. 81 No. 1, pp. 51-75.

Alisson, P. D. (2009). Fixed effects regression models. Los Angeles, California: Sage.

Baltagi, B. H. (1995).Econometric Analysis of Panel Data. Wiley.

Berle A.A. and Means, G. C. (1932). The Modern Corporation and Private Property. New York: Macmillan.

Bialoskorski Neto, S. (2012). Economia e Gestão de Organizações Cooperativas. 2. ed. São Paulo: Atlas.

Bialoskorski Neto, S.; Barroso, M. F. G. and Rezende, A. J. (2012). Governança cooperativa e sistemas de controle gerencial: uma abordagem teórica de custos da agência. Brazilian Business Review. Vitória, v. 9, n.2, p. 72-92, jun.

Black, H. and Dugger, R. H. (1981). Credit Union Structure, Growth and Regulatory Problems. The Journal of finance, Singapore, v. 36, n. 2, may.

Bonus, H. and Schmidt, S. (1990). The cooperative banking group in the federal republic of Germany. Journal of Institutional and Theoretical Economics, Singapore, v. 146, p. 180-207.

Branch, B. and Baker C. (1998). Overcoming Credit Union Governance Problems: What Does It Take? Washington, 1998.

Bressan, V. G. F.; Braga m, J. and Bressan, A. A. (2012). Análise da dominação de membros tomadores ou poupadores de recursos nas cooperativas de crédito mineiras, Economia Aplicada, São Paulo, v. 16, n. 2, p. 339-359, jul.

Bundt, T.; J. S. Chiesa, and B. P. Keating. (1989). Common Bond Ty pe and Credit Union Behavior. Review of Social Economy, United Kingdom, v. 47, p. 27-42.

Conselho Monetário Nacional. (2015). Resolução nº 4.434, de 5 de agosto de 2015. Dispõe sobre a constituição, a autorização para funcionamento, o funcionamento, as alterações estatutárias e o cancelamento de autorização para funcionamento das cooperativas de crédito e dá outras providências. Available on: <http://www.bcb.gov.br/pre/normativos/busca/downloadNormativo.asp?arquivo=/Lists/Normativos/Attachments/48507/Res_4434_v1_O.pdf.>. Accessed on: 01 Apr. 2016.

Crúzio, H.O. (2009). Governança Corporativa Financeira: nas cooperativas de crédito. São Paulo: Editora FGV.

Cuevas, C. E. and Fischer, K. P. (2006). Cooperative financial institutions: issues in governance, regulation, and supervision. Washington: The World Bank.

Davis, K. (2001). Credit Union Governance and Survival of the Cooperative Form. Journal Of Financial Services Research, 19(2/3), 197.

Diehl, A. A. and Tatim, D. C.(2004). Pesquisa em ciências sociais aplicadas. São Paulo: Pearson Prentice Hall.

Emmons, W. R. and Mueller, W. (1999). Credit Unions and the Common Bonds. Federal Reserve Bank: St. Louis.

Evans, A. C. and Branch, B. (2002). A technical guide to PEARLS: a performing monitoring system. WOCCU: Madison.

Fernandez, B. P. M. and Bêrni, D. A. (2012). Os Métodos da Ciência. In: Bêrni, D. A. and Fernandez, B. P. M. (Orgs) Métodos e Técnicas de Pesquisa. São Paulo: Saraiva.

Flannery, M. J. (2974). An economic evaluation of credit unions in the United States. Boston: Federal Reserve Bank of Boston.

Goddard, J. and Wilson, J. O. S. (2005). US Credit Unions: An Empirical Investigation of Size, Age and Growth. Annals of Public and Cooperative Economics, United Kingdom, v. 76, n. 3, p. 375–406.

Gujarati, D. and Porter, D.C. (2011). Econometria Básica. 5. ed. São Paulo: McGrawHill.

Hair, J. F. et al. (2009). Análise multivariada de dados. 6. ed. Porto Alegre: Artmed.

Jensen, M. and Meckling, W. (1976). Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics, Netherlands, v. 3, n. 4, p. 305-360, Oct.

Karels, G. V.; Mcclatchey. (2001). The Effect of the Common Bond and Membership Expansion on Credit Union Risk. Atlanta: Federal Reserve Bank of Atlanta, 2001.

Kohers, T. and Mullis, D. (1990). The impact of a financial institution’s age on its financial profile and operating characteristics: the evidence for the credit union industry. Review of Business and Economic Research, Australia, v. 26, p. 38-49, 1990.

La Porta, R.; Lopez-De-Silanes, F. and Shleifer, A. (1999). Corporate Ownership around the World. The Journal of Finance, v. 54, n. 2. april.

Legget, K. J. and Stewart, Y. H. (1999). Multiple Common Bond Credit Unions and the Allocation of Benefits. Journal of Economics and Finance, United States, v. 23, n. 3, p. 235-245.

Lima, R. E.; Araújo, M. B. V. and Amaral H. F. (2008). Conflitos de agência: Um estudo comparativo dos aspectos inerentes a Empresas tradicionais e cooperativas de crédito. Minas Gerais: UFMG.

Mckillop, D. and Ferguson, C. (1998). An examination of borrower Orientation and scale effects in UK credit unions. Annals of Public and Cooperative Economics, United Kingdom, v. 69, n. 2, p. 219-242, 1998.

Patin, R. P. and Mcniel, D. W. (1991). Benefit imbalances among credit union member groups: evidence of borrower-dominated, saver dominated and neutral behaviour? Applied Economics, United Kingdom, v. 23, n. 4, p. 769-780.

Peng, M. W. and Sauerwald, S. (2012). Corporate governance and principal-principal conflicts. Chapter 29, First Proof.

Pinho, D. B. (1982). O pensamento cooperativo e o cooperativismo brasileiro. 18 ed. São Paulo: CNPq.

Smith, D. J.; Cargill, T. F. and Robert, A. M. (1998). Credit Unions: An Economic Theory of a Credit Union. The Journal of Finance, Singapore, v. 36, n. 2, p. 519-528.

Smith, D. J. (1984). A Theoretic Framework for the Analysis of Credit Union Decision Making. The Journal of Finance, Singapore, v. 39, n. 4, p. 1155-1168.

Smith, D. J. (1986). A test for variant objective functions in credit unions. Applied Economics, United Kingdom, v. 18, n. 9, p. 959-970.

Soares, M. and Melo Sobrinho, A. (2009). Governança Cooperativa: Diretrizes e mecanismos para fortalecimento da governança em cooperativas de crédito. Brasília: Banco Central do Brasil.

Sparrowe, R. and Mayer, K. J. (2011). From the editors: Publishing in AMJ - Part 4: Grounding hypotheses. Academy of Management Journal, United States, v. 54, n. 6, p. 1098-1102.

Taylor, R. A. (1977). Credit Unions and Economic Efficiency. Rivista Internationale di Scienze Economiche e Commerciali, v. 24, p. 239-247.

Taylor, R. A. (1979). Optimal Reserve Levels for Credit Unions. Rivista Internationale di Scienze Economiche e Commerciali, Padova, v. 26, p. 971-983.

Taylor, R. A. (1971). The Credit Union as a Cooperative Institution. Review of Social Economy, United Kingdom, v. 29, n. 2, p. 207-217.

Trindade, L. Z. and Bialoskorski Neto, S. (2012). Uma análise da separação entre a propriedade e a gestão nas cooperativas de crédito brasileiras. Revista de Contabilidade e Organizações. São Paulo, v. 6 n. 16, p.95-118, dez.

Unda, L. A., Ahmed, K., & Mather, P. R. (2019). Board characteristics and credit‐union performance. Accounting & Finance, 59(4), 2735-2764.

Walker, M. C.; Chandler, G. G. (1977). On the Allocation of the Net Monetary Benefits of Credit Union Membership. Review of Social Economy, v. 35, n. 2, p. 159-168.

Westley, G. D. B. and Brian (org.). (2000). Safe money: building effective credit unions in Latin America. Washington: Inter-American Development Bank and World Council of Credit Unions.

Westrup, M. N.; Camilo, S. P. O.; Estevam, D. O. (2018). Dominance of members takers or resource savers in credit unions and performance: analysis under the perspective of agency theory. Navus - Revista de Gestão e Tecnologia, v. 8, n. 2, p. 27-42.

Whetten, D. A. (1989). What constitutes a theoretical contribution? Academy of management review, v. 14, n. 4, p. 490-495.

Wooldridge, J. M. (2011). Introdução à econometria: Uma abordagem moderna. 4. ed. Thomson.

Yin, R. K. (2010). Estudo de caso: planejamento e métodos. 3. ed. Porto Alegre: Bookman.

Young, M. N. (2008). Corporate Governance in Emerging Economies: A Review of the Principal–Principal Perspective. Journal of Management Studies, v. 45, n. 1, jan.

Zylbersztajn, D. (1994). Organização de cooperativas: desafios e tendências. Revista de Administração. São Paulo, v. 29, n. 3, p. 23-32, set.

Zylbersztajn, D. (2002). Quatro estratégias fundamentais para cooperativas agrícolas. Working Paper nº 02/017. FEA. São Paulo: USP.

Downloads

Published

2022-10-05

How to Cite

Westrup, M. N., & Camilo, S. P. O. (2022). The Dominance of Borrowers and Savers Credit Unions. Advances in Social Sciences Research Journal, 9(9), 569–586. https://doi.org/10.14738/assrj.99.13215