Credit Union Life Cycle and Membership: Evidence from Brazilian Credit Unions

Objective: This work explores the relationship between membership growth and Brazilian credit unions that cease operations according to the life cycle precepts proposed by Cook (1995) and Cook & Burress (2009). Methodology: Kaplan-Meier estimators and duration models were applied to a sample...

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Detalles Bibliográficos
Autores: Canassa, Bruno José, Zancan, Flávia, de Moura Costa, Davi Rogério
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2022
País:Brasil
Institución:Universidade de Brasília (UnB)
Repositorio:Contabilidade, Gestão e Governança
Idioma:inglés
portugués
OAI Identifier:oai:oai.jamg.cloud:article/2738
Acceso en línea:https://revistacgg.org/index.php/contabil/article/view/2738
Access Level:acceso abierto
Palabra clave:Cooperativas de crédito
Quadro-social
Ciclo de vida.
Credit Unions
Membership
Life Cycle
Descripción
Sumario:Objective: This work explores the relationship between membership growth and Brazilian credit unions that cease operations according to the life cycle precepts proposed by Cook (1995) and Cook & Burress (2009). Methodology: Kaplan-Meier estimators and duration models were applied to a sample of 253 credit unions founded between 2003 and 2018 to analyze the chances of survival for credit unions in relation to the size of their membership. Originality/Relevance: In examining membership growth, this work differs from previous studies which have focused on financial performance. Results: Credit unions with lower growth in terms of membership ceased operations soon after their founding without becoming established. A growth in membership in credit unions with a propensity for heterogeneity in terms of the members’ interests, however, is positively associated with a risk of closing, possibly due to the influence costs and agency costs. Theoretical/Methodological Contributions: This study’s findings reinforce the importance of considering member characteristics in examining credit union survival as well as policies that help credit unions become established and then adapt to the heterogeneity of their members’ interests.