Abstract
We aim in this paper to understand the link between corporate governance characteristics and the discontinuity of Brazilian credit unions, investigating if these characteristics affect their strategy of exiting the market. The information on the discontinuity was collected at the Brazilian Central Bank, and corporate governance variables, such as duality and board size, for instance, were withdrawn from bylaw then-current in 2016. The final sample comprises 44 discontinued and 1,006 continued credit unions. Additionally, we perform tests to verify the statistical differences between those groups. Despite finding statistical differences in some of the corporate governance characteristics, it is noteworthy that age and size seem to have a greater effect on the discontinuity. Moreover, apparently, the cost of compliance imposed by regulatory bodies might influence the credit unions in different ways. This suggests possibilities for further research on this topic, such as the role of member heterogeneity on corporate governance structures and discontinuity.
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