Credit Unions: A Theoretical and Empirical Overview

McKillop, Donal; Wilson, John O. S.

doi:10.2139/ssrn.1702782

Cited by 42 publications

(75 citation statements)

References 138 publications

(73 reference statements)

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“…The key papers identified are Liang et al . (), McKillop and Wilson (), and Adams and Mehran (). The most critical papers are McKillop and Wilson () and Liang et al .…”

Section: Brief Commentary On the Pitchmentioning

confidence: 99%

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Board of directors characteristics and credit union financial performance: a pitch

Unda

2015

Accounting & Finance

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“…The key papers identified are Liang et al . (), McKillop and Wilson (), and Adams and Mehran (). The most critical papers are McKillop and Wilson () and Liang et al .…”

Section: Brief Commentary On the Pitchmentioning

confidence: 99%

“…(), McKillop and Wilson (), and Adams and Mehran (). The most critical papers are McKillop and Wilson () and Liang et al . () because the former recognises the key features of credit unions, while the latter provides the empirical model to test the association between board characteristics and performance.…”

Section: Brief Commentary On the Pitchmentioning

confidence: 99%

Board of directors characteristics and credit union financial performance: a pitch

Unda

2015

Accounting & Finance

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“…For instance, they are very prevalent in the USA (e.g. McKillop and Wilson , Klinedinst ) . Around 101 million inhabitants of the USA (about 48% of the economically active population) were members of credit unions in 2014 (WOCCU 2015).…”

Section: Introductionmentioning

confidence: 99%

The Determinants of Membership in Cooperative Banks: Common Bond Versus Private Gain

Jones

Jussila

Kalmi

2016

Annals of Public and Cooperative Economics

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Membership in organizations has been rarely studied by economists.We study the determinants of membership in financial cooperatives, organizations that have significant economic and social presence in many countries. By identifying economic and non-economic incentives to be members of cooperatives, our conceptual framework is novel. Our empirical work analyzes panel data from 2001-2009 for Finnish cooperative banks and compares two empirical concepts of the membership ratio. We find evidence that monetary incentives are important reasons to join, but also the size of the community from which members are recruited plays a role. Over time, monetary incentives have increased and this may have contributed to faster growth in membership in cooperatives based in larger municipalities after these changes. Cooperatives attracting new members primarily on the basis of monetary rewards is also consistent, over time, with a reduction in the role of the common bond.

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“…Higher transaction costs may affect the profitability, efficiency and sustainability of these institutions, which in turn might affect the overall viability of the industry. On the other side, since SACCO are member-owned and controlled mutual organizations, it might become easier to control the information asymmetry problem, lower the cost of screening and monitoring, and reduce transaction cost through peer pressure and monitoring (McKillop and Wilson, 2011). As a result, the combination of these factors may help to dampen the moral hazard problem, and instill an organizational culture which holds members accountable and prudential as to how they manage and use the financial resources.…”

Section: Introductionmentioning

confidence: 99%

Efficiency and Profitability of Tanzanian saving and Credit Cooperatives: Who is a Star?

Marwa¹

2014

JEBS

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The objective of this paper is to evaluate and benchmark the performance of Tanzanian Saving and Credit Cooperatives (SACCOs). Measuring the performance of these organizations is useful in helping them to monitor and control their performance and business processes and improve productivity and profitability. The study used secondary data from audited financial statements from 103 SACCOs. Technical efficiency was estimated using the data envelopment analysis approach and profitability was measured using return on assets. Then an efficiency-profitability matrix was employed to distinguish best performers from struggling SACCOs. This particular approach has been selected to account for multiple dimensions of performance measures. Using the top 25% as a cut-off for profitability and efficiency we found that only 12% of the firms were diagnosed as best performers (stars). The majority of the firms (61%) were classified under the low efficiency low profitability category. Fourteen SACCOs were highly profitable but had low efficiency scores, which demonstrate a potential for performance improvement by increasing their efficiency. Another group of 14 SACCOs were classified as potential candidates for divestiture because they had high efficiency scores but low profitability. Conclusively the performance of the industry in Tanzania needs a well-thought turnaround strategy to make it commercially viable. For the majority of the SACCO both profit-increasing and efficiencyincreasing strategies are required.

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Credit Unions: A Theoretical and Empirical Overview

Cited by 42 publications

References 138 publications

Board of directors characteristics and credit union financial performance: a pitch

Board of directors characteristics and credit union financial performance: a pitch

The Determinants of Membership in Cooperative Banks: Common Bond Versus Private Gain

Efficiency and Profitability of Tanzanian saving and Credit Cooperatives: Who is a Star?

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