Efficiency and profitability of development finance agencies

Souza, Juliana Ribeiro; Oliveira, Joice Garcia de; Barbosa Neto, João Estevão; Pinheiro, Juliano Lima

doi:10.1590/0034-761220200111

Acessibilidade / Reportar erro

Brasil

Revista de Administração Pública

Español English

Brasil

Español English

sumário « anterior atual seguinte »

Sumário

Article • Rev. Adm. Pública 55 (4) • Jul-Aug 2021 • https://doi.org/10.1590/0034-761220200111 copy

Efficiency and profitability of development finance agencies

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Development Finance Agencies (DFAs) carry out public investments and development policies. In Brazil, their main objective is to promote welfare, contribute to the states’ social and economic development, guarantee sustainability, and reduce regional and social inequalities. This descriptive research adopted a quantitative approach and aimed to analyze the efficiency and profitability levels of DFAs in Brazilian states. Standard indicators were used to analyze these agencies’ efficiency and profitability and median tests were conducted to verify whether the size of the agency influences the performance of the observed indicators. The sample consisted of 14 DFAs, in the period from 2012 to 2018. The results showed that larger DFAs tend to show an excellent efficiency level, while agencies with less infrastructure demonstrated regular and unsatisfactory efficiency. Also, DFAs with more significant total assets were more likely to present regular or unsatisfactory profitability. Finally, efficiency ratio (ER) and average return on credit operations (RCO) were identified as adequate indicators to analyze the DFAs’ performance.

Keywords:
development agencies; efficiency; profitability; development finance institutions

OER	2012	2013	2014	2015	2016	2017	2018	Total
Average	1.27	1.43	1.16	1.22	1.99	1.61	1.19	1.43
Standard deviation	1.30	1.33	1.09	1.20	2.95	1.67	0.90	1.63
Coefficient of variation	1.02	0.93	0.94	0.98	1.48	1.04	0.76	1.14
Minimum	0.32	0.26	0.33	0.31	0.24	0.25	0.24	0.24
Maximum	4.87	4.75	4.42	4.65	11.46	5.82	2.90	11.47
ER	2012	2013	2014	2015	2016	2017	2018	Total
Average	2.05	1.97	2.12	2.24	2.18	2.20	2.28	2.15
Standard deviation	0.99	0.96	1.02	1.14	1.43	1.39	1.73	1.23
Coefficient of variation	0.49	0.49	0.48	0.51	0.66	0.63	0.76	0.57
Minimum	0.66	0.65	1.16	1.08	1.06	0.72	0.48	0.48
Maximum	3.97	3.99	4.48	4.38	6.39	5.60	6.57	6.57
ROE	2012	2013	2014	2015	2016	2017	2018	Total
Average	0.03	0.03	0.03	0.01	-0.02	-0.02	-0.02	0.01
Standard deviation	0.05	0.04	0.02	0.08	0.08	0.10	0.09	0.07
Coefficient of variation	1.55	1.18	0.86	66.06	-3.95	-5.66	-4.35	15.33
Minimum	-0.06	-0.05	0.01	-0.25	-0.19	-0.20	-0.23	-0.25
Maximum	0.14	0.09	0.09	0.11	0.07	0.09	0.05	0.14
RCO	2012	2013	2014	2015	2016	2017	2018	Total
Average	0.14	0.12	0.12	0.13	0.14	0.15	0.19	0.14
Standard deviation	0.06	0.04	0.04	0.04	0.05	0.06	0.11	0.06
Coefficient of variation	0.43	0.30	0.36	0.31	0.37	0.43	0.57	0.43
Minimum	0.07	0.06	0.07	0.08	0.10	0.07	0.09	0.06
Maximum	0.29	0.19	0.23	0.22	0.29	0.29	0.45	0.45

DFA	OER			ER
DFA	Value	Quartile	Classification	Value	Quartile	Classification
AF do Rio Grande do Sul S/A	0.28	4	Excellent	5.00	4	Excellent
AF do Paraná S/A	0.36	4	Excellent	3.49	4	Excellent
AF do Estado de São Paulo S/A	0.37	4	Excellent	3.22	4	Excellent
AF do Estado da Bahia S/A	0.76	3	Good	1.78	3	Good
AF do Estado do Rio de Janeiro S/A	0.82	3	Good	2.03	3	Good
AF do Estado de Santa Catarina S/A	0.45	3	Good	2.98	3	Good
AF de Alagoas S/A	1.04	3	Good	1.22	1	Unsatisfactory
AF de Goiás S/A	1.18	1	Regular	1.64	2	Regular
AF e Desenv. do Estado do Piauí S/A	1.21	2	Regular	1.00	1	Unsatisfactory
AF do Estado do Tocantins S/A	1.41	2	Regular	1.20	1	Unsatisfactory
AF do Estado do Amazonas S/A	1.43	2	Regular	1.84	3	Good
AF do Rio Grande do Norte S/A	2.19	2	Unsatisfactory	1.25	2	Regular
AF do Amapá S/A	2.76	1	Unsatisfactory	1.54	2	Regular
AF do Estado de Mato Grosso S/A	4.72	1	Unsatisfactory	1.50	2	Regular

DFA	ROE			RCO
DFA	Value	Quartile	Classification	Value	Quartile	Classification
AF do Estado da Bahia S/A	0.06	4	Excellent	0.13	2	Regular
AF do Paraná S/A	0.06	4	Excellent	0.11	1	Unsatisfactory
AF do Rio Grande do Norte S/A	0.06	4	Excellent	0.14	3	Good
AF do Estado de Santa Catarina S/A	0.03	3	Good	0.15	3	Good
AF do Estado de São Paulo S/A	0.03	3	Good	0.11	2	Regular
AF de Goiás S/A	0.02	3	Good	0.12	2	Regular
AF do Estado do Rio de Janeiro S/A	0.01	3	Good	0.10	1	Unsatisfactory
AF do Amapá S/A	0.01	2	Regular	0.17	3	Good
AF do Rio Grande do Sul S/A	0.01	2	Regular	0.09	1	Unsatisfactory
AF de Alagoas S/A	-0.01	2	Regular	0.21	4	Excellent
AF do Estado de Mato Grosso S/A	-0.04	2	Regular	0.11	2	Regular
AF e Desenv. do Estado do Piauí S/A	-0.04	1	Unsatisfactory	0.18	3	Good
AF do Estado do Tocantins S/A	-0.06	1	Unsatisfactory	0.22	4	Excellent
AF do Estado do Amazonas S/A	-0.16	1	Unsatisfactory	0.22	4	Excellent

Variables	Larger	Smaller
OER	0.42	1.55
ER	2.91	1.30
ROE	0.03	0.01
RCO	0.11	0.15

Variables	Z	Prob > \|z\|	Decision - α = 5%
OER	7.12	0.00	Reject H₀
ER	-6.97	0.00	Reject H₀
ROE	-2.58	0.01	Reject H₀
RCO	4.59	0.00	Reject H₀

Fundação Getulio Vargas Fundaçãoo Getulio Vargas, Rua Jornalista Orlando Dantas, 30, CEP: 22231-010 / Rio de Janeiro-RJ Brasil, Tel.: +55 (21) 3083-2731 - Rio de Janeiro - RJ - Brazil
E-mail: rap@fgv.br

Acompanhe os números deste periódico no seu leitor de RSS

[1] Juliana Ribeiro Souza - Ph.D. student in Controllership and Accounting at the Federal University of Minas Gerais (UFMG). E-mail: julianaribeiro.jrs@gmail.com