Enhancing governance practice for better performance of credit union cooperatives in Thailand

Abstract

AbstractCredit union cooperatives (CUCs) are member‐owned financial organisations that aim to improve the members’ living standards in Thailand. The success of Thailand CUCs is significantly associated with their good governance practices. This study provides an overview of Thailand CUCs’ governance practices and examines the impact of governance on the performance of Thailand CUCs. The study finds Thailand CUCs’ success varies in terms of financial and social performance. The results suggest that Thailand CUCs’ performance is affected by members’ participation, the board of directors, the management team, as well as the organisations’ age and size. This study extends the current limited knowledge on the governance‐performance nexus of Thailand CUCs in the literature, thus helping Thailand policymakers and practitioners boost both the financial and social performance of the CUCs in Thailand.