Master's – Administrative structure and financial performance of credit unions: an impact analysis through CMN Resolutions 3,859 and 4,434

Tipo de evento: 
Defesa
Data e hora: 
09/08/2019 - 14:30 to 17:30

 

Matheus José Nogueira De Andrade Costa Figo

Master's – Administrative structure and financial performance of credit unions: an impact analysis through CMN Resolutions 3,859 and 4,434

Advisor: Prof. Dr. Lucas Ayres Barreira de Campos Barros

Comission: Profs. Drs. Davi Rogério de Moura Costa,  Romeu Eugênio de Lima and Valéria Gama Fully Bressan   

 Class: 217, FEA-5

 ABSTRACT*

 Although they still represent a small part of the national financial system, credit unions have been showing significant growth rates in recent years in terms of number of cooperatives and credit operations, drawing increasing attention in the financial market. Even if it is a non-profit institution and carries a collective spirit and mutual aid at first, cooperatives are subject to potential conflicts arising from the misalignment of their members' interests, and therefore are faced with the costs generated by these conflicts . The presence of these costs generates interest in researching whether certain governance practices could mitigate them. Because of the similar risks to those of non-cooperative financial institutions, cooperatives were regulated by the Central Bank of Brazil, which, among several regulated aspects, acted in a broad discussion on cooperative governance practices. This great strategic project culminated in important norms for the segment, representing a milestone for cooperative governance. As Bacon Central in this period also created a new segmentation among cooperatives, placing differentiated governance requirements for each segment, it was envisaged the possibility of adopting different econometric models to measure the potential causal relation between governance and financial performance through of three methodologies: instrumental variable, discontinuity and differences in differences. These methodologies explored the potential impact of Resolutions CMN 3,859 in 2010 and 4,434 in 2015 on certain characteristics of governance and possible changes in the performance of affected cooperatives. For the scenario of Resolution 3,859, a statistically significant relationship was found between the majority of the performance variables and the presence of the differentiated administrative structure referenced in the Resolution. Most signs of the estimated coefficients pointed to an improvement in the performance of the cooperatives that adopted the differentiated administrative structure contemplated in the standard. For the scenario of Resolution 4,434, a lower number of performance variables presented a statistically significant relationship with the presence of the differentiated administrative structure, moreover, most of the time the signs of the coefficients point to a deterioration in the performance of the cooperatives that adopted them.

*Abstract provided by the author

 

Departamento:

Voltar para a página de eventos