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Abstract

Credit unions generate surpluses over their operations by the difference between rates charged less cost of services and/ or the difference between rates paid and charged in the operations of financial intermediation between their members. In this context, there are important management decisions in both policies regarding the generation of those surpluses and their distribution. This paper analyzes and typifies the generation and distribution of surplus in rural credit cooperatives in the state of São Paulo. Thus, in the form of multi-cases, it analyses the financial information over five years of the seven largest rural credit cooperatives in São Paulo, regarding both the generation and the distribution of surplus. The distribution of surplus in cash to cooperative members may be an contractual incentive to enhance their operations with the cooperative. In the end, we typify three distinct groups of surplus distribution strategies : a) indivisible destinations: remains allocated to indivisible reserves, b) divisible but unavailable immediately to their members: capitalization of the remains, or c) divisible and available : deposits in their cash accounts. The importance of this review related to the distribution of results is due to the growth of qcooperative business, as well as the profitability of these organizations; those are elements to encourage loyalty and to raise the level of operations among the cooperative members.

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