Transformations in the Ownership Structure of Credit Unions: Banking Service Rates and the Expectations of Members and Directors
Open membership and mergers are common transformations in the ownership structure in Brazilian credit unions. Following the logic that they are motivated by the expectations of members and directors, this study associates these transformations with the banking services rates offered by credit unions...
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| Format: | Article |
| Language: | English |
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FUCAPE Business School
2022-01-01
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| Series: | BBR: Brazilian Business Review |
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| Online Access: | http://www.redalyc.org/articulo.oa?id=123075330002 |
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| _version_ | 1825207281907662848 |
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| author | Bruno José Canassa Davi Rogério de Moura Costa Carlos Alberto Grespan Bonacim |
| author_facet | Bruno José Canassa Davi Rogério de Moura Costa Carlos Alberto Grespan Bonacim |
| author_sort | Bruno José Canassa |
| collection | DOAJ |
| description | Open membership and mergers are common transformations in the ownership structure in Brazilian credit unions. Following the logic that they are motivated by the expectations of members and directors, this study associates these transformations with the banking services rates offered by credit unions. We employ ordered and multinomial logit models to investigate whether abnormal positive bank spreads-reflecting rates that could offer few advantages to members and large private benefits to directors-increase the probability of transformation. Our results indicate that the expectations of members and directors explain credit unions’ transformation, as seen in size and performance. The evidence reinforces that, under expectations of gains, members and directors play an active role in the decision to transform the ownership structure of credit unions, suggesting improvements in the corporate governance and incentives for mergers so that credit unions can grow to benefit members. |
| format | Article |
| id | doaj-art-97447ca5699a428f827ac4668dad5b6b |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2022-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-97447ca5699a428f827ac4668dad5b6b2025-02-06T23:39:34ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2022-01-01196607625http://dx.doi.org/10.15728/bbr.2022.19.6.2.ptTransformations in the Ownership Structure of Credit Unions: Banking Service Rates and the Expectations of Members and DirectorsBruno José CanassaDavi Rogério de Moura CostaCarlos Alberto Grespan BonacimOpen membership and mergers are common transformations in the ownership structure in Brazilian credit unions. Following the logic that they are motivated by the expectations of members and directors, this study associates these transformations with the banking services rates offered by credit unions. We employ ordered and multinomial logit models to investigate whether abnormal positive bank spreads-reflecting rates that could offer few advantages to members and large private benefits to directors-increase the probability of transformation. Our results indicate that the expectations of members and directors explain credit unions’ transformation, as seen in size and performance. The evidence reinforces that, under expectations of gains, members and directors play an active role in the decision to transform the ownership structure of credit unions, suggesting improvements in the corporate governance and incentives for mergers so that credit unions can grow to benefit members.http://www.redalyc.org/articulo.oa?id=123075330002credit unionsownership structureopen membershipmergers |
| spellingShingle | Bruno José Canassa Davi Rogério de Moura Costa Carlos Alberto Grespan Bonacim Transformations in the Ownership Structure of Credit Unions: Banking Service Rates and the Expectations of Members and Directors BBR: Brazilian Business Review credit unions ownership structure open membership mergers |
| title | Transformations in the Ownership Structure of Credit Unions: Banking Service Rates and the Expectations of Members and Directors |
| title_full | Transformations in the Ownership Structure of Credit Unions: Banking Service Rates and the Expectations of Members and Directors |
| title_fullStr | Transformations in the Ownership Structure of Credit Unions: Banking Service Rates and the Expectations of Members and Directors |
| title_full_unstemmed | Transformations in the Ownership Structure of Credit Unions: Banking Service Rates and the Expectations of Members and Directors |
| title_short | Transformations in the Ownership Structure of Credit Unions: Banking Service Rates and the Expectations of Members and Directors |
| title_sort | transformations in the ownership structure of credit unions banking service rates and the expectations of members and directors |
| topic | credit unions ownership structure open membership mergers |
| url | http://www.redalyc.org/articulo.oa?id=123075330002 |
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