Net-surplus as a useful tool to analyse financial information in co-op societies

  • María José Cabaleiro Casal Departamento de Economía Financiera y Contabilidad. ECOBAS. Universidade de Vigo
  • Carlos Iglesias Malvido Departamento de Economía Aplicada. ECOBAS. Universidade de Vigo
Keywords: Strategies, participation, residual income, empirical study, Galicia

Abstract

This paper aims to analyse a sample of Galician co-ops to verify whether or not it is possible to deduce different financial behaviours among co-op partners from the amount of net-surplus. To this end, our study adds net-surplus to the variation registered in some account entries so that other residual incomes yielded by the co-op may be considered. The distribution of these revenues shows that partners do not usually choose to fully anticipate residual incomes. This reveals that some firms follow a positive net-surplus strategy, which is actually different from the null net-surplus strategy asserted by the classical financial theory. Furthermore, results show that differences between both strategies are statistically significant. This opens a path to future research on determinants explaining why co-op partners voluntarily renounce to anticipating these residual incomes. Such behaviour only arises when yearly accounts render a positive result, thereby making the accounting net-surplus a useful tool to analyse financial information in co-op societies.

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Published
2016-07-22
How to Cite
Cabaleiro Casal M. J. y Iglesias Malvido C. (2016). Net-surplus as a useful tool to analyse financial information in co-op societies. REVESCO. Revista de Estudios Cooperativos, 122, 34-58. https://doi.org/10.5209/REVE.52985
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Articles