Operational Efficiency and the Growth of Credit Cooperatives in Brazil
DOI:
https://doi.org/10.17524/repec.v17i4.3303Keywords:
Cooperativas de Crédito, Eficiência, Crescimento Agregado e Análise Envoltória de DadosAbstract
Objective: To analyze whether the growth of credit unions between 2012 and 2020 was influenced by
operational efficiency.
Method: 355 cooperatives linked to the Brazilian Credit Cooperative System (Sicoob) were empirically
analyzed. First, an analysis model applied the Data Envelopment Analysis (DEA) to obtain efficiency
scores. Next, a two-stage regression analysis with panel data was performed. Controls related to the
cooperatives’ number of branches, age, capitalization, provisioning, and financial structure were adopted.
Results: A DEA efficiency score with a median of 0.52 was found among the cooperatives, indicating
considerable inefficiency among the units analyzed. The regression analysis results show that a Brazilian
credit cooperative’s level of operational efficiency is positively related to its growth.
Theoretical and practical contributions: The literature presents empirical evidence on efficiency but
not the relationship between Brazilian credit cooperatives’ operational efficiency and growth. The results
of this study can support cooperative managers’ decision-making regarding cooperatives’ operational
efficiency and growth.
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