Persistence of surpluses and stages of the life cycle in financial cooperatives
DOI:
https://doi.org/10.16930/2237-766220253647Keywords:
Life Cycle, Surplus Persistence, Credit CooperativesAbstract
The objective of this study is to examine the persistence of surpluses across different stages of the life cycle in credit cooperatives. The sample comprises 622 individual Brazilian credit cooperatives over the period 2017–2022. Cooperatives were grouped into life cycle stage clusters based on revenue growth, personnel expense growth, and participation in the National Cooperative Credit System, following the models of Vasylieva and Chmutova (2015) and Maia (2022). Surplus persistence was measured using the model proposed by Dechow and Schrand (2004). The results indicate a sector in transformation, with a reduction in cooperatives classified in the Decline stage and an increase in the Growth and Maturity stages. Cooperatives in the initial stages tend to exhibit higher rates of revenue and personnel expense growth, whereas cooperatives in the Maturity and Decline stages show lower rates, which may reflect stabilization. Surplus persistence differs across the life cycle stages, with surpluses being more persistent in cooperatives at the Maturity and Decline stages. The originality and relevance of this study lie in its investigation of surplus persistence in Brazilian credit cooperatives, considering the role of these entities within the financial system and the impact of sectoral changes in banking. This study contributes to the literature on surplus persistence by incorporating the influence of life cycle stages in credit cooperatives. From a practical and social perspective, the research provides insights for credit cooperatives to develop financial strategies aligned with their specific realities, thereby strengthening their sustainability in a highly competitive banking environment.
References
Arruda, M. P., Vieira, C. A., Paulo, E., & Lucena, W. G. (2015). Análise do conservadorismo e persistência dos resultados contábeis das instituições financeiras brasileiras. Sociedade, Contabilidade e Gestão, 10(2), 23–25. https://doi.org/10.21446/scg_ufrj.v10i2.13348 DOI: https://doi.org/10.21446/scg_ufrj.v10i2.13348
Azevedo, M. de A., & Gartner, I. R. (2020). Concentração e Competição no Mercado de Crédito Doméstico. Revista de Administração Contemporânea, 24(5), 380–399. https://doi.org/10.1590/1982-7849rac2020190347 DOI: https://doi.org/10.1590/1982-7849rac2020190347
Banco Central do Brasil (2024). O que são cooperativas de crédito? https://www.bcb.gov.br/pre/composicao/coopcred.asp?frame=1
Can, G. (2020). Do life-cycles affect financial reporting quality? Evidence from emerging market. Cogent Business & Management, 7(1), 1854147. https://doi.org/10.1080/23311975.2020.1854147 DOI: https://doi.org/10.1080/23311975.2020.1854147
Canassa, B. J., Zancan, F., & de Moura Costa, D. R. (2022). Credit Union Life Cycle and Membership: Evidence from Brazilian Credit Unions. Revista Contabilidade, Gestão E Governança, 25(1). http://dx.doi.org/10.51341/1984-3925_2022v25n1a3 DOI: https://doi.org/10.51341/1984-3925_2022v25n1a3
Carvalho, F. L. D., Diaz, M. D. M., Bialoskorski Neto, S., & Kalatzis, A. E. G. (2015). Saída e insucesso das cooperativas de crédito no Brasil: uma análise do risco. Revista Contabilidade & Finanças, 26, 70–84. https://doi.org/10.1590/1808-057x201411390 DOI: https://doi.org/10.1590/1808-057x201411390
Cook, M. L. (1995). The Future of U.S. Agricultural Cooperatives: A Neo-Institutional Approach. American Journal of Agricultural Economics, 77(5), 1153–1159. https://doi.org/10.2307/1243338 DOI: https://doi.org/10.2307/1243338
Cook, M. L. (2018). A life cycle explanation of cooperative longevity. Sustainability, 10(5), 1586. https://doi.org/10.3390/su10051586 DOI: https://doi.org/10.3390/su10051586
Cook, M., & Burress, M. J. (2009). A Cooperative Life Cycle Framework. 21st Century: Lessons from the Past.
Damodaran, A. (2012). Investment valuation: Tools and techniques for determining the value of any asset. John Wiley & Sons.
Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50(2-3), 344–401. https://doi.org/10.1016/j.jacceco.2010.09.001 DOI: https://doi.org/10.1016/j.jacceco.2010.09.001
Dechow, P. M., & Schrand, C. M. (2004). Earnings quality. CFA Institute.
Dickinson, V. (2011). Cash flow patterns as a proxy for firm life cycle. The Accounting Review, 86(6), 1969–1994. https://doi.org/10.2308/accr-10130 DOI: https://doi.org/10.2308/accr-10130
Diniz, M. M. (2020). Qualidade da informação contábil: um estudo das cooperativas de crédito brasileiras. [Dissertação de mestrado, Universidade Federal da Paraíba, Programa de Pós-Graduação em Contabilidade, Paraíba, Brasil].
Diniz, M. M., & Girão, L. D. A. (2019). Persistência das Sobras: Uma análise nas Cooperativas de Crédito singulares brasileiras. Anais do USP International Conference in Accounting.
Drake, K. D. (2012). Does firm life cycle explain the relation between book-tax differences and earnings persistence? Arizona State University.
Dunn, O. J. (1964). Multiple comparisons using rank sums. Technometrics, 6(3), 241–252. DOI: https://doi.org/10.1080/00401706.1964.10490181
Espich, D. (2025). A relação entre o desempenho social e econômico-financeiro nos diferentes estágios do ciclo de vida das cooperativas de crédito brasileiras. [Tese de doutorado, Universidade Federal de Santa Maria]. Repositório Digital Manancial, UFSM.
Favalli, R. T., Gori Maia, A., & da Silveira, J. M. F. J. (2020). Governance and financial efficiency of Brazilian credit unions. RAUSP Management Journal, 55, 355–373. https://doi.org/10.1108/RAUSP-02-2019-0018 DOI: https://doi.org/10.1108/RAUSP-02-2019-0018
Fávero, L. P. L., Belfiore, P. P., Silva, F. L. da, & Chan, B. L. (2009). Análise de Dados: Modelagem Multivariada para Tomada de Decisões. Campus.
Ferguson, C., & McKillop, D. (1997). The Strategic Development of Credit Unions. (1st. ed.). Wiley.
Ferguson, C., & McKillop, D. G. (2000). Classifying Credit Union Development in Terms of Mature, Transition and Nascent Industry Types. The Service Industries Journal, 20(4). DOI: https://doi.org/10.1080/02642060000000049
Ferreira, G. D., do Carmo, C. H. S., Zanolla, E., de Moura, P. J. P., & Nascimento, D. F. (2021). Qualidade da Informação Contábil: Análise Bibliométrica das Pesquisas em Cooperativas. Revista Mineira de Contabilidade, 22(3), 49–59. https://doi.org/10.51320/rmc.v22i3.1234 DOI: https://doi.org/10.51320/rmc.v22i3.1234
Fried, H. O., Lovell, C. K., & Yaisawarng, S. (1999). The impact of mergers on credit union service provision. Journal of Banking & Finance, 23(2-4), 367–386. DOI: https://doi.org/10.1016/S0378-4266(98)00090-9
Goddard, J., McKillop, D., & Wilson, J. O. (2009). Which credit unions are acquired? Journal of Financial Services Research, 36, 231–252. https://doi.org/10.1007/s10693-009-0055-x DOI: https://doi.org/10.1007/s10693-009-0055-x
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R., & Tatham, R. L. (2010). Análise multivariada de dados (6a. Ed). Artmed Editora.
Kolodiziev, O., Chmutova, I., & Biliaieva, V. (2016). Selecting a kind of financial innovation according to the level of a bank’s financial soundness and its life cycle stage. Banks and Bank Systems, 11(4), 40–49. http://dx.doi.org/10.21511/bbs.11(4).2016.04 DOI: https://doi.org/10.21511/bbs.11(4).2016.04
Kolozsvari, A. C., & Macedo, M. A. D. S. (2016). Análise da influência da presença da suavização de resultados sobre a persistência dos lucros no mercado brasileiro. Revista Contabilidade & Finanças, 27(72), 306–319. https://doi.org/10.1590/1808-057x201602610 DOI: https://doi.org/10.1590/1808-057x201602610
Krishnan, G. V., Myllymäki, E. R., & Nagar, N. (2020). Does financial reporting quality vary across firm life cycle? Journal of Business Finance & Accounting, 48(5-6), 954–987. https://doi.org/10.1111/jbfa.12508 DOI: https://doi.org/10.1111/jbfa.12508
Lei nº 5.764, de 16 de dezembro de 1971. (1971). Define a Política Nacional de Cooperativismo, institui o regime jurídico das sociedades cooperativas, e dá outras providências. Diário Oficial da República Federativa do Brasil. http://www.planalto.gov.br/ccivil_03/leis/l5764.htm
Lima, A. S. D., Carvalho, E. V. A. D., Paulo, E., & Girão, L. F. D. A. P. (2015). Estágios do ciclo de vida e qualidade das informações contábeis no Brasil. Revista de Administração Contemporânea, 19, 398–418. http://dx.doi.org/10.1590/1982-7849rac20151711 DOI: https://doi.org/10.1590/1982-7849rac20151711
Liu, M. M. (2006). Accruals and managerial operating decisions over the firm life cycle. [Doctoral dissertation, Massachusetts Institute of Technology]. DOI: https://doi.org/10.2139/ssrn.1013536
Maia, L. L. (2022). Eficiência e ciclo de vida das cooperativas de crédito: uma abordagem econômica e social. [Tese de Doutorado, Universidade Federal de Minas Gerais, Programa de Pós-Graduação em Contabilidade, Minas Gerais, Brasil]. https://repositorio.ufmg.br/bitstream/1843/51933/1/Tese_Maia%282022%29.pdf
Maia, S. C., de Benedicto, G. C., do Prado, J. W., Robb, D. A., de Almeida Bispo, O. N., & de Brito, M. J. (2019). Mapping the literature on credit unions: a bibliometric investigation grounded in Scopus and Web of Science. Scientometrics, 120, 929–960. https://doi.org/10.1007/s11192-019-03165-1 DOI: https://doi.org/10.1007/s11192-019-03165-1
Mueller, D. C. (1972). A life cycle theory of the firm. The Journal of Industrial Economics, 20 (3), 199–219. DOI: https://doi.org/10.2307/2098055
Oliveira, P. H. M., Bressan, V. G. F., & Bressan, A. A. (2014). Existe diferença no desempenho financeiro das cooperativas centrais de crédito no Brasil? Revista Evidenciação Contábil & Finanças, 2(2), 40–54. DOI: https://doi.org/10.18405/recfin20140203
Park, Y., & Chen, K. H. (2006). The effect of accounting conservatism and life-cycle stages on firm valuation. Journal of Applied Business Research, 22(3), 75–92. DOI: https://doi.org/10.19030/jabr.v22i3.1428
Prolo Júnior, C. D. (2019). Determinantes do desempenho financeiro das cooperativas de crédito singulares no Brasil. [Dissertação de mestrado. Universidade do Vale do Rio dos Sinos – UNISINOS].
Samadiyan, B., & Rezaei, F. (2012). Investigating the relationship between stock prices and earnings quality using Leuz Parton-Simko and Penman models in firm's life cycle stages. Journal of Basic and Applied Scientific Research, 2(3), 2312–2324.
Santos, R. R. D. (2023). Income Smoothing e folga organizacional: estudo das relações nos estágios de vida das cooperativas de crédito brasileira.[Tese de Doutorado, Universidade Federal de Pernambuco, Pernambuco, Brasil].
Silva, T. P. D., Leite, M., Guse, J. C., & Gollo, V. (2017). Financial and economic performance of major Brazilian credit cooperatives. Contaduría y administración, 62(5), 1442–1459. https://doi.org/10.1016/j.cya.2017.05.006 DOI: https://doi.org/10.1016/j.cya.2017.05.006
Smith, D. J., Cargill, T. F., & Meyer, R. A. (1981). Credit unions: an economic theory of a credit union. Journal of Finance, 36(2), 519–528. DOI: https://doi.org/10.1111/j.1540-6261.1981.tb00470.x
Unda, L. A., Ahmed, K., & Mather, P. R. (2019). Board characteristics and credit‐union performance. Accounting & Finance, 59(4), 2735–2764. https://doi.org/10.1111/acfi.12308 DOI: https://doi.org/10.1111/acfi.12308
Vasylieva, T. A., & Chmutova, I. M. (2015). Empirical Model of a Bank Life Cycle. Actual Problems of Economics, 10(172), 352–361.
Xu, B. (2007). Life cycle effect on the value relevance of common risk factors. Review of Accounting and Finance, 6(2), 162–175. https://doi.org/10.1108/14757700710750838 DOI: https://doi.org/10.1108/14757700710750838
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Revista Catarinense da Ciência Contábil
This work is licensed under a Creative Commons Attribution 4.0 International License.
The copyright for articles published in this journal belongs to the author (s), with first publication rights assigned to Revista Catarinense da Ciência Contábil. Due to appearing in this publicly accessible journal, articles are free to use, with mandatory recognition of the original authorship and initial publication in this magazine and for educational and non-commercial applications. The magazine chose to use published works for non-commercial purposes, including the right to submit or work for publicly accessible databases. The content of published articles is the sole and exclusive responsibility of the authors. - The author (s) authorize (s) a publication of the article in the journal; - The author (s) guarantee (s) that a contribution is original and unpublished and that it is not being evaluated in another magazine (s); - A magazine is not responsible for the opinions, ideas and concepts emitted in the texts, for the full responsibility of the author (s); - It is reserved to the editors or the right to make textual adjustments and to adjust the article to the publication rules.
This work is licensed under a Creative Commons Atribuição-NãoComercial-CompartilhaIgual 4.0 Internacional.
