CORPORATE GOVERNANCE STRUCTURES IN THE CONTEXT OF COOPERATIVE BANKING

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Abstract

This study aims to investigate the constraints of corporate governance structures, in the context of cooperative banking. That is, it will try to identify the factors that are the basis of the practice of corporate governance of cooperative banking, such as organizational performance, relationships of trust on the part of customers and the community in general, the image of the competition and to the regulator and the remuneration of the management team. In order to test the hypotheses, a questionnaire was carried out with the administration of the different cooperative banks, obtaining a sample of 58 banks, representing 67% of the total universe. The results point to the existence of a causal relationship between financial performance and corporate governance practices, specifically at the level of cooperative rights and at the level of relationship with clients, society and fiscal council activity. With the adoption of cooperative governance practices, the relationship between the return of cooperators and these practices has not been proven, the same happened with the relationship between the remuneration of managers and the adoption of these practices.

Keywords: Legal Certification of Accounts, Statutory Auditor, Financial Auditing, Corporate Governance, Firm Performance

JEL Classification: G30, M21, M40, M42

Received: 05.11.2018

Accepted: 27.12.2018

Published online: 25.02.2019

How to cite this paper: Vaz Ferreira, J. M. B. (2019). Corporate governance structures in the context of cooperative banking. Corporate Governance and Sustainability Review, 3(1), 25-41. https://doi.org/10.22495/cgsrv3i1p3