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The purpose of this paper is to identify the factors that affect the Canadian credit unions' financial performance which play an important role in providing financial services to the agriculture sector.

We surveyed the literature to identify different performance metrics of credit unions and a set of possible factors that might affect their performance. We collected data related to different dependent and independent variables from financial statements and balance sheets of 189 credit unions and from general websites like Statistics Canada and Bank of Canada. Then, we imputed the missing data and developed fixed effect and random effect panel data regression models. First, we used return on asset as the main dependent variable. Afterwards, we used six performance metrics to check the robustness of our models.

From an initial list of 16 possible factors that might affect the financial performance of a credit union, we were able to narrow the factors down to the nine most significant ones. It was observed that credit unions in the prairies were more likely to perform well financially as compared to other provinces. Membership size, the size of a credit union in terms of total assets, capital adequacy ratio, market penetration, diversification of income, inflation rate and provincial GDP and interest rates were significant. The cross-sectional analysis performed confirmed the findings of the fixed effect panel data models.

This study has a limitation concerning the number of years included into the time series analysis. Only ten years worth of data were available.

Results provide credit union management, service providers for credit unions and market analysts with a current understanding of how different internal and external factors might affect return on assets, return on equity, delinquency, cash ratio, efficiency ratio, asset growth and loan growth. Our models can be used to predict financial performance of credit unions based on the defined significant variables.

Although there is a wide body of literature that studies performance of banks, not many studies focus on credit unions. Moreover, the existing studies are based on credit unions in United States or Europe, and literature on Canadian credit unions is scarce. The data collected covered 189 Canadian credit unions. To our knowledge this is the first study that looks at the various internal, external and regulatory factors together that affect the credit unions in various jurisdictions of Canada.

The purpose of this paper is to explore why credit unions might need deposit insurance, how they might respond to its introduction and how this protection mechanism should be designed. The objective is to determine how successful the deposit insurance scheme has been in the context of Northern Ireland and whether it offers an alternative to the public provision of deposit insurance which appears to have been the model adopted by credit union movements elsewhere.

As part of this analysis the paper considers the Northern Ireland experience where a subset of credit unions has been members of a private insurance arrangement since 1989.

The deposit insurance mechanism did not cause a propensity for member credit unions to engage in risk shifting behaviour. The analysis suggests that at present a universal blueprint in deposit insurance design may well be unnecessary in combating risk shifting behaviour.

This paper helps to fill a gap in the banking and finance literature where the study of deposit insurance in the context of credit unions has been given little attention.

Ben Chang, the CEO of a small credit union, Neighbourhood Credit Union (Neighbourhood), located in Atlantic Canada was evaluating a possible merger with another larger credit union, Pleasantview Credit Union (Pleasantview). Chang and Neighbourhood’s Board of Directors (Board) were interested in a merger that would enhance member benefits via improved technology, innovative delivery channels and a more robust financial planning and wealth management capability. Chang, along with a team of experts, was methodical in seeking out interested credit unions. Pleasantview emerged as a strong candidate from the expression of interest stage. The initial due diligence review was complete, the memorandum of understanding signed and a working group comprised of members from both credit unions formed. Chang, however, was becoming increasingly concerned about the lack of strategic fit between Neighbourhood and Pleasantview. In conversation with the consultant hired to assist with the merger process, Chang was considering recommending to the Board that the merger process with Pleasantview be halted. It was January 2015 and Chang was set to retire in May. Before he retired he wanted a plan in place that ensured increased member benefits, as well one that balanced growth and sustainability for Neighbourhood. Chang was scheduled to meet with the Board in four days. He needed a recommendation that would address the current merger situation, as well as provide other options for Neighbourhood.

This case is based upon primary and secondary data collection. Formal and follow-up informal interviews were conducted in 2015 with the CEO and “merger” consultant at Neighbourhood Credit Union. Organisational documents and publicly available documents were also consulted. To ensure the confidentiality terms of the merger discussions, the case is disguised with respect to the name and location of the credit unions, the names of the CEO and consultant, as well as the financials. The timeline, process followed, key decision and opinions of the CEO and merger consultant as presented in the case are real.

This case is formulated for university undergraduate students in their third or fourth years of study and graduate students. It is appropriate for strategic management and co-operative/not-for-profit management classes intended for a 60–75 min class session.

Credit unions offer an alternative to traditional banking given their distinctive ownership structure and their goal of maximising members’ benefits. Motivated by the increased expectations regarding more ethical behaviour in the financial industry, this paper aims to provide a better understanding of the relevant features and values that facilitated the emergence of the credit union movement in Australia.

Using social movement theory, this study analyses 23 interviews conducted in the early 1990s with the supporters of the credit union movement in Australia, in which the characteristics and values of the credit union movement are identified.

Findings demonstrate that the credit union ethos is rooted in family and religious influences, and that these organisations were keen on promoting their distinctiveness on “fairness” and “caring for their members”. Credit unions, however, have rarely tackled the movement’s most neglected value “cooperation between cooperatives”.

This research contributes to the discussion of ethics in business history as it elaborates on how values and ethos crafted the identity and ensured the survival of the credit union movement in Australia.

This study aims to gain insight into the motivations behind the decision to use high-cost payday loans by households who possess mainstream credit and to determine whether this behavior has changed over time.

Using data from Statistics Canada’s Surveys of Financial Security, probit models are used to examine the sociodemographic and financial indicators associated with payday loan use.

The analysis uncovers the sociodemographic and financial characteristics of payday loan-user households with access to lower-cost short-term loans. The findings indicate that the likelihood of payday loan use has risen over time. Additional analysis reveals that indicators of financial instability are positively associated with payday loan use among this group.

This research highlights the dichotomy of payday loan users and recommends policymakers tailor solutions to the specific needs of different types of payday loan users.

This research highlights the distinguishing sociodemographic and financial characteristics of payday loan user households and recommends policymakers tailor solutions to the specific needs of different types of payday loan users.

This is the first study, to our knowledge, to focus analysis on payday loan use of those with access to lower-cost short-term credit alternatives in Canada and to include measures of financial instability in the analysis. This research is timely given the current economic environment of high interest rates and high levels of household debt.

To understand the communication important to social capital development and community engagement in regional communities and its relevance to corporate social responsibility (CSR).

Qualitative approach including focus groups and semi-structured interviews. Case studies of three regional Australian and Canadian communities at different stages of community development.

Communication, both traditional and in new media forms such as social media, was important to social capital development provided that it was diverse, appropriate to community needs and extended its reach to community members to include those who were marginalised. Access and skill issues affected some community members’ engagement when they attempted to use social media, although the increasing use of social media as a connector was observed. These findings have implications for organisations’ CSR, as organisations can be responsive to their communities if they also communicate and engage with them for mutual benefit.

A pilot, exploratory study that highlighted the varied context of community social capital and the diversity of communication that engages and includes community members; ongoing research is in progress to gain understanding of regional communities’ connections and networks, and how to strengthen them and how stakeholders are identified and supported.

The study indicated that it is important to explore all communication avenues and extend the reach and participation of community communication through diverse channels including social media. The research provided some good examples where organisations support and encourage community social capital development – this underpins the success of other programmes such as CSR programmes.

To develop sound networks and relationships where organisations and their communities develop trust, deal with issues and collaboratively problem solve. Social capital develops and supports other forms of capital – without it organisations may be too focused on ‘doing good’ rather than ‘being good’.

This chapter provides insight into communication layering and the context of social capital development for effective communication in regional communities. Social responsiveness is possible when organisations understand their community; this chapter puts forward the notion that organisations are members of their communities so that their social capital is important to all they do, including their planning and delivery of CSR programmes.

Little research exists on the economic impact of the co-operative sector in Canada, and changes in the sector over time. The purpose of this paper is to fill-in the gaps in the knowledge about the size of the sector and its performance over time using a comparative analysis.

The authors of this paper conducted an input-output analysis of co-operatives in Canada for the years 2009 and 2010. First, the authors quantified the size of the sector for each year and then these two data points were compared to analyze the changes in this one-year period.

This paper demonstrates that co-operatives in Canada are significant to the national economy and remain stable over time.

This is the first time such a study has been done in Canada for the co-operative sector.

The most significant event for the School has been the announcement of the creation of the National Centre for Management Research and Development. The Centre is due to open in 1986 and will provide research facilities for up to 20 major projects designed to improve the competitiveness of Canadian business practices.

The purposes of this paper are twofold. First, it analyses the income structure in cooperative financial institutions and examines how traditional and non-traditional incomes are related. Second, it evaluates whether increasing diversification towards non-traditional incomes facilitates or hampers the benefits of financial cooperative owners.

Data are collected from over 3,100 US credit unions over the period of 1994–2016. A number of modern econometric techniques are employed throughout the analysis, including the use of panel fixed effect, generalised method of moments (GMM) and two-stage least square (2SLS) methodologies.

Using US credit unions as the empirical setting, the empirical results reveal that the expansion of traditional income leads to a corresponding increase in income from non-traditional activities. However, an increasing reliance on non-traditional income causes a significant drop in interest margins. The authors also find that the extent to which income diversification affects owner benefit varies across credit union types and period of time. While income diversification negatively affects owners' benefits in single common bond credit unions, it has no significant influence on multiple common bond and community credit union owners' benefits. Third, diversification can be beneficial during crisis time, but can be detrimental to owner benefit during normal time.

This paper provides some of the first empirical investigations on the diversification strategy of cooperative financial institutions. Therefore, the results offer significant policy implications for policymakers and market participants on whether financial cooperatives should diversify or specialise.

Legitimacy is defined as the ability to exercise authority without resorting to open coercion. It is an essential asset for firms seeking to reach and maintain profitability. In this context, the purpose of this paper is to present the case of the Canadian banking industry, which has been highly criticized during the last decade for its record profits, low level of risk taking, high fees and buoyant CEO compensation packages. More specifically, this research aims to analyze the general public's perceptions of the industry during a 50‐month period, starting with the first strong reaction to recurrent announcements of record profits. It also seeks to look at industry reactions as a response to bank bashing.

The case study in this paper was conducted in two steps. It first analyzed public perceptions by studying the content of a sample of newspaper articles on the Canadian banking industry from 1996‐2000. It then examined the industry's reactions by reviewing the documents found on the web site of the Canadian Bankers Association.

The study shows that the crisis faced by the banking industry was of limited but sustained intensity. The industry used a mixed strategy, justifying itself through its public discourse and mounting a program to inform and educate the Canadian public on the effects of economic factors in their lives. The banking industry limited its reactions to Sethi's first‐level strategy found in the literature.

The paper highlights how the general public perceive profit levels in the Canadian banking industry and how legitimacy is clearly an issue in this context.