Operational Efficiency and the Growth of Credit Cooperatives in Brazil

Authors

  • Gutemberg Leonel Pereira Fucape Business School
  • Silvania Neris Nossa Fucape Business School
  • Bruno Funchal Fucape Business School
  • Gercione Dionizio Silva Fucape Business School

DOI:

https://doi.org/10.17524/repec.v17i4.3303

Keywords:

Cooperativas de Crédito, Eficiência, Crescimento Agregado e Análise Envoltória de Dados

Abstract

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.

Author Biographies

Gutemberg Leonel Pereira, Fucape Business School

Mestre em Ciências Contábeis

Silvania Neris Nossa, Fucape Business School

Doutora em Ciências Contábeis e Administração  

Bruno Funchal, Fucape Business School

Doutor em Economia  

Gercione Dionizio Silva, Fucape Business School

Doutor em Economia Aplicada

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Published

2023-12-22

How to Cite

Leonel Pereira, G., Neris Nossa, S., Funchal, B., & Dionizio Silva, G. (2023). Operational Efficiency and the Growth of Credit Cooperatives in Brazil. Journal of Education and Research in Accounting (REPeC), 17(4). https://doi.org/10.17524/repec.v17i4.3303