Determinants of revenue diversification in Brazilian credit unions

Objective : This study investigated the determinants of revenue diversification in Brazilian credit unions. Method : A sample of 482 singular credit unions belonging to the Sicoob, Sicredi, and Unicred systems was addressed from 2009-2 to 2018-2. The factors determining diversification were obtained using a multiple regression model in two stages, estimated by the Systemic Generalized Method of Moments. Results : Return on Equity, Net Interest Margin, and General Expenses appeared as significant determinants of diversification in credit unions. These findings indicate that more profitable cooperatives are more likely to diversify; cooperatives would compensate for a decrease in traditional sources of income with non-traditional incomes, and that greater revenue diversification may be one of the consequences of increased operating expenses. Contributions : This study contributes to understanding which factors lead credit unions to adopt revenue diversification strategies, which increase their income from non-traditional activities; finding new sources of income may be important to increase an institution’s general income. The results from estimating the GMM System model indicate that the variables Return on Equity Net Interest Margin (MARGIN), and General Expenses (DESPGR) are factors that determine diversification. Abstract Objective : To analyze the influence of auditors’ behavior during organizational conflicts on the trust and cooperation between internal and external auditors. Method : This descriptive and qualitative survey addressed a sample of 226 internal auditors and 267 external auditors working in Brazilian companies. Based on the factors generated by the factor analysis of the trust and cooperation elements, multiple linear regressions were performed considering the non-confrontation, solution-oriented, and control dimensions for the auditors’ attitudes toward organizational conflicts. Results show that internal and external auditors hold different perspectives on the factors guiding the decision on whether to trust and cooperate. Auditors are also influenced by age, sex, and position. As for their behavior when facing organizational conflicts, most internal and external auditors present attitudes directed toward solving conflicts. This profile positively influences trust and cooperation between internal and external auditors. Contributions : this study indicates the importance of identifying the profile of auditors and its impact on audit processes, contributing to decision-making in the governance field, to optimize the resources invested in the auditing process. Abstract Purpose and method: This teaching case portrays a family’s adverse financial situation, a time when the breadwinner is about to retire. Even with an excellent monthly income, this individual never thought about the future and used all resources to meet immediate needs, not generating extra income to complement his retirement income. This fictional case is described using a playful narrative and dialogues based on the authors’ experiences, depicting real-world objectives and situations. Hence, it instigates and promotes a reflection on the importance of financial education with all the aspects that involve earning income, saving, spending consciously, investments, and, finally, aiming for a sustainable retirement. Outcomes and contributions: This paper highlights financial education and its importance in ensuring one’s economically viable (and sustainable) future. The income, expenditure, and investment tripod is expected to become a virtuous circle. This teaching case is suggested for courses addressing finances, budgeting and financial management, and others related to personal finance and even transversal teaching.