LOCATED IN EAST WOLLEGA ZONE, OROMIA REGIONAL STATE, ETHIOPIA, ON DETERMINANTS OF CAPITAL STRUCTURE OF SAVINGS AND CREDIT COOPERATIVE UNIONS

Abstract

The purpose of this study was to look into the particular factors that affect the capital structure of SACCUs operating in the East Wollega zone. This study used an explanatory and descriptive research design. A non-probability sampling design was used, and the "Agadhaga'ii" SACCU was purposefully chosen. The research unit's financial accounts were used to gather secondary data. For eleven years, from 2011to 2012 to 2021 to 2022, multiple linear regression and correlation analysis were both used for a subset of SACCU. The Statistical Packages for the Social Sciences (SPSS) version 20 and STATA version 14.0 were used to examine the data. The results of this study demonstrate that the study unit heavily utilizes the pecking order theory and the static trade-off theory as two capital structure theories. In order to reduce the weighted average cost of capital while making financial decisions, the researcher advised the management bodies to focus their attention and efforts on the key factors determining the capital structure of the study unit