Manager bonding and the technical efficiency of cooperative credit unions-parametric and non-parametric analyses |
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| Authors: | Michael Adusei Kwasi Poku Samuel Akomea |
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| Institution: | 1. Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana.;2. Department of Marketing and Corporate Strategy, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana. |
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| Abstract: | We engage parametric and non-parametric approaches to analyze unbalanced data (2012–16) from 225 credit unions in Ghana. The non-parametric analysis involves using data envelopment analysis to assess the technical efficiency of the credit unions. We show that most of them are not technically efficient. The average five-year overall technical efficiency and pure technical efficiency scores of a credit union are 0.87 and 0.91 respectively. Targeted at inquiring whether manager bonding significantly connects with the technical efficiency of credit unions, the parametric analysis which involves the use of probit and logit regression techniques, shows that, generally, the bonding of managers hurts the technical efficiency of credit unions. We are, thus, led to the conclusion that bonding of managers may not be in the best interest of credit unions in Ghana. |
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| Keywords: | cooperative credit unions manager bonding non-parametric analysis parametric analysis technical efficiency |
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