Juanita Salinas Vásquez , Juan Pablo Sarmiento Jara , María Paz Urgilés Salinas , Diego Fernando Oña Avendaño
{"title":"Social capital and credit risk in a financial cooperative of Ecuador","authors":"Juanita Salinas Vásquez , Juan Pablo Sarmiento Jara , María Paz Urgilés Salinas , Diego Fernando Oña Avendaño","doi":"10.1016/j.jcom.2024.100247","DOIUrl":null,"url":null,"abstract":"<div><p>In finance markets with asymmetric information, the borrower’s relational characteristics of social capital are relevant for lenders and borrowers as they increase the possibility of access to financing and reduce default rates and transaction costs by expanding information channels while increasing the capacity to afford obligations. Especially in financial cooperatives, taking into account social capital implies recognizing the potential of the information generated by its governance structure, close relationships with local communities, and ties with members. This investigation analyses the relationship between social capital and credit risk, suggesting that social capital reduces the probability and intensity of default interaction increased during COVID-19. The quantitative analysis uses data collected from Ecuador from “Cooperativa de Ahorro y Crédito Jardín Azuayo” (COACJA), where the Hurdle econometric model with negative binomial distribution is applied. Results show that social capital variables identified on an individual and contextual level evidence limited but significant effects in reducing the probability and intensity of default on different risk levels. Moreover, it is observed that the effect of credit application mobility, volunteering, and trust between people increases during the pandemic year.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":null,"pages":null},"PeriodicalIF":2.2000,"publicationDate":"2024-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2213297X24000181/pdfft?md5=29b5d428f4ae80f04f8c22941b05ec87&pid=1-s2.0-S2213297X24000181-main.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Co-operative Organization and Management","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S2213297X24000181","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
In finance markets with asymmetric information, the borrower’s relational characteristics of social capital are relevant for lenders and borrowers as they increase the possibility of access to financing and reduce default rates and transaction costs by expanding information channels while increasing the capacity to afford obligations. Especially in financial cooperatives, taking into account social capital implies recognizing the potential of the information generated by its governance structure, close relationships with local communities, and ties with members. This investigation analyses the relationship between social capital and credit risk, suggesting that social capital reduces the probability and intensity of default interaction increased during COVID-19. The quantitative analysis uses data collected from Ecuador from “Cooperativa de Ahorro y Crédito Jardín Azuayo” (COACJA), where the Hurdle econometric model with negative binomial distribution is applied. Results show that social capital variables identified on an individual and contextual level evidence limited but significant effects in reducing the probability and intensity of default on different risk levels. Moreover, it is observed that the effect of credit application mobility, volunteering, and trust between people increases during the pandemic year.
在信息不对称的金融市场中,借款人的社会资本关系特征对贷款人和借款人都具有重要意义,因为这些特征通过扩大信息渠道,增加了获得融资的可能性,降低了违约率和交易成本,同时提高了承担债务的能力。特别是在金融合作社中,考虑社会资本意味着认识到其治理结构、与当地社区的密切关系以及与成员的联系所产生的信息潜力。本研究分析了社会资本与信贷风险之间的关系,认为社会资本可降低 COVID-19 期间增加的违约互动的概率和强度。定量分析使用了从厄瓜多尔 "Cooperativa de Ahorro y Crédito Jardín Azuayo"(COACJA)收集的数据,并应用了负二项分布的赫尔德计量经济学模型。结果表明,从个人和环境层面确定的社会资本变量在降低不同风险等级的违约概率和违约强度方面效果有限,但意义重大。此外,研究还发现,在大流行病年期间,信贷申请流动性、志愿服务和人与人之间的信任度的影响会增加。