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CORPORATE GOVERNANCE: VALUE CREATION AND PERFORMANCE IN CREDIT UNIONS

José Roberto de Souza Francisco, Hudson Fernandes Amaral and Luís M. de Castro
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José Roberto de Souza Francisco: FACE, Universidade Federal de Minas Gerais, Brazil
Hudson Fernandes Amaral: FACE, Universidade Federal de Minas Gerais, Brazil
Luís M. de Castro: ISEG School of Economics and Management

Portuguese Journal of Management Studies, 2013, vol. XVIII, issue 1, 31-54

Abstract: In this study, we examine the relationship between good corporate governance practices and the creation of value/performance of credit unions from 2010 to 2012. The objective was to create and validate a corporate governance index for credit unions, and to then analyse the relationship between good governance practices and the creation of value/performance. The problem question is: do good corporate governance practices provide value creation for credit unions? The research started by creating indices from factor analysis to identify latent dependent variables related to value creation and performance; next indices were created from the principal component analysis for the creation of independent latent variables related to corporate governance. Finally, based on panel data from regression models, the influence of the variables and indices related to corporate governance on the indices of value creation and performance was verified. Based on the research, it became evident that the Corporate Governance Index (IGC) is mainly impacted by Executive Management, with 40.31% of the IGC value, followed by the Representation and Participation dimension, with 34.07% of the IGC value. The contribution for academics was the creation of the Corporate Governance Index (IGC) applied for credit unions. As for the contribution to the system of credit unions, the highlight was the effectiveness of the mechanisms for economic-financial and asset management adopted by BACEN, credit unions and OCEMG. Classification- JEL:

Keywords: Corporate Governance Index; Credit Unions; Value Creation (search for similar items in EconPapers)
Date: 2013
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