Cooperative Business Performance: Quantitative and Qualitative Approaches Related to the Value of Firm

Abstract

West Java Provincehasa total of 25,741 cooperative unit,which is the third largest in number of cooperative in Indonesia.Although theawareness of thebenefits of cooperatives has begun to grow in the community, however, there are about 30% cooperatives that are not active ordeficient in the performance,this condition will impact to thevalue of firm.This study was aimedto determine therelationship between cooperative business performance and value of firm. Thetype of research used in this study wasdescriptive research methods,with 39 sampledata from sharia savings and loan cooperativesin West Java.This study used descriptive research method with 39 samples. The results of this researchshow that the performance of sharia savings and loan cooperativesin West Javais still in the moderate categorycategory with an average score of 61.16, where the factor of productive asset quality is the most influential factor inthebusiness performance of cooperatives(49.3%), Value of firm cooperativesin West Java is stillshowing poor performance, where the average Return of Assetwas6.7%,the performance of businesscooperativesinfluencethe value of the firmis 36%.Based onthe result it is obligated toperform guidance from the relevant agencies so that the level of risk in the management of cooperatives, especially those related to the quality of earning assets is increase,.the efficiency of cooperatives especially those related to business costs need to be managedwell so that financial performance can be improved.