Financial Performance Of Cooperatives Research Articles

Penguatan Akuntabilitas Pengurus Koperasi Melalui Sosialisasi PERMENKOP Nomor 2 Tahun 2024 Di Koperasi Kabupaten Subang

This Community Service Program aims to improve accounting literacy among cooperative administrators in Subang Regency, especially in understanding the differences between the Financial Accounting Standards for Entities Without Public Accountability (SAK ETAP) and the Financial Accounting Standards for Private Entities (SAK EP) as regulated in the Regulation of the Minister of Cooperatives and SMEs Number 2 of 2024. This Regulation requires the implementation of new accounting policies in cooperatives no later than early 2025 to avoid administrative sanctions. The methods used in this program include the preparation, implementation, and evaluation stages. Preparation includes selecting participating cooperatives, namely Dekopinda Subang member cooperatives, and creating training modules. The implementation stage involves socializing accounting policies to participants through a combination of theory and practice, followed by pre-tests and post-tests to assess improvements in accounting literacy. The results of this program show an increase in participants' understanding of the new accounting policies, which are expected to improve the accountability and financial performance of cooperatives in Subang Regency.

How the Performance of Medium, Small and Micro Co-operatives Should be Measured? A Perspective from Malaysia

Researchers have focused too much on the financial performance of co-operatives, neglecting the original purpose and nature of co-operatives. There is a gap in the literature, especially in developing a holistic measurement of co-operative performance based on stakeholder perspectives. Thus, the objective of this study is to develop a measurement of co-operative performance, considering co-operative principles and economic, social, and sustainable governance perspectives, suitable for the context of medium, small, and micro co-operatives. Malaysia is used as the context. In conducting this study, the Delphi technique is utilized where a specific focus group consisting of five clusters representing the stakeholders as participants. Qualitative analysis of results suggests performance indicators that reflect the purpose (objectives) and principles of co-operatives, which are divided into three aspects, economic, social and sustainable governance. This study is one of very few studies that develop the indicators for co-operative performance measurement. Hence, it is important for co-operatives in this category to consider the use of indicators suggested in this study to comprehensively measure their performance.

Organizational, Social, Economic and Financial Management Performance of Cooperatives

This study aimed to determine the level of organizational, social, economic and financial performance of cooperatives when taken altogether and when grouped according to variables and to determine if there is significant difference on the level of organizational, social, economic and financial performance of cooperatives when grouped according variables. This aims to know whether or not organizational, social, and economic performance of cooperatives significantly predict financial management performance of cooperatives. Descriptive-Quantitative design is used in this study and instrument used was the Cooperative Performance Report Questionnaire together with interview questions which were conducted through face to face interview. Organizational, Social, Economic and Financial Management Performance of Cooperatives in Negros Occidental when taken altogether is excellent, very satisfactory, excellent, and satisfactory, respectively. There is significant difference in the level of organizational performance when grouped according to variables. No significant difference in social performance when grouped according to variables. No significant differences in economic performance of cooperatives when grouped according to variables. In financial performance of cooperatives when grouped according to variables a significant difference existed, when grouped as to classification, however, no significant difference existed in financial performance of cooperatives when grouped according to age. Organizational, social, economic performances of cooperatives are predictors of financial performance. There is significant relationship between organizational performance and social performance, organizational performance and economic performance, organizational performance and financial management performance, social performance and economic performance, no significant relationship between social performance and financial management performance, economic performance and financial management performance, respectively. Cooperatives maybe encouraged to sustain excellent organizational, social, economic and financial management performances while very satisfactory and satisfactory performances needs improvement. Programs on the improvement of financial performance of cooperatives may be initiated by cooperatives or by proper authorities’ in-charge. Lastly, close and intensive monitoring of Cooperative performance is recommended.

Pengaruh Corporate Social Responsibility Terhadap Kinerja Keuangan Koperasi Simpan Pinjam di Kota Bandung

This research has a purpose, namely to analyze corporate social responsibility (CSR), the financial performance of cooperatives and the influence of corporate social responsibility (CSR) on the financial performance of cooperatives. Corporate Social Responsibility (CSR) and Financial Performance of Savings and Loan Cooperatives are the objects of research. The survey method is used in research conducted by researchers.Based on the results of the study concluded, namely: 1). implementation of corporate social responsibility (CSR) is adequate 2). the implementation of the cooperative's financial performance is adequate; and 3). the application of corporate social responsibility (CSR) affects the financial performance of cooperatives

Kinerja Keuangan Koperasi Sebelum Dan Saat Pandemi Covid-19 Terhadap Sisa Hasil Usaha

This study analyzes the financial performance before and during the covid-19 pandemic on the operating profit. Sources of data come from primary data obtained through interviews and secondary data in the form of financial reports through documentation. The study was carried out using a quantitative descriptive method. Analysis was carried out descriptively regarding financial performance through return on assets (ROA), return on equity (ROE), and cash ratio. The study results show that financial performance before and during the covid-19 pandemic is still below cooperative financial standards and needs to produce operating profit optimally. Cooperative financial performance will have an influence on operating profit in the future. Good financial performance will be able to produce better-operating profits for cooperatives. The financial performance of cooperatives can impact obtaining profits in the future; therefore, cooperatives must manage their assets effectively and efficiently. This study can be a reference for cooperatives in running a business and increasing income.

Analysis of the Influence of Governance Quality on the Performance of Savings and Credit Cooperatives in Togo

The objective of this paper is to analyze the influence of governance quality on the performance of savings and credit cooperatives in Togo. To do so, a governance quality index of fifty-five savings and credit cooperatives was calculated over the period from 2013 to 2019. The data was collected from the supervision unit of microfinance institutions and their managers. The results show that governance quality has a significant and positive effect on the financial performance of cooperatives. It positively influences the number of active borrowers and the percentage of female borrowers. However, it has a negative relationship with loan size. This paper presents the synthetic nature of governance quality in the Togolese context with a dynamic panel data model. It shows that improved governance has a positive impact on performance. It constitutes a tool for promoting good governance practices for the various actors involved in the microfinance sector and even a basis for developing a good governance charter for this sector.

Pengaruh Trust, Gaya Kepemimpinan, Sistem Pengendalian Manajemen dan Kompetensi Sumber Daya Manusia terhadap Kinerja Keuangan Koperasi (Studi Kasus Pada Koperasi di Kecamatan Selaparang Kota Mataram)

This study aims to analyze the influence of trust, leadership style, management control systems and human resource competencies on the financial performance of cooperatives in Selaparang District of Mataram City. This research method uses quantitative research methods with primary data obtained from a Likert scale questionnaires. The population used is all members of 119 cooperatives in Selaparang district of Mataram City. The sample of this research is the finance staff and supervisors whose numbers are determined using the Slovin formula so that a total of 98 people is obtained as the study sample. The results of this study indicate that (1) Quality of Trust has a significant negative effect on the financial performance of cooperatives in Selaparang district of the Mataram city. (2) Leadership style has a significant positive effect on the financial performance of cooperatives in Selaparang district of the Mataram city. (3) The management control system has a significant positive effect on the financial performance of cooperatives in Selaparang district of the Mataram city. (4) Human resource competence has a significant positive effect on the financial performance of cooperatives in Selaparang district of the Mataram city

Social Capital and Economic Performance of Financial Cooperatives: Evidence from the Amhara Region

Social Capital and Economic Performance of Financial Cooperatives: Evidence from the Amhara Region

Internal organizational factors and financial performance of cooperatives in Rwanda: A case of Zigama CSS

Internal organizational factors and financial performance of cooperatives in Rwanda: A case of Zigama CSS

KINERJA KOPERASI DI INDONESIA

This research aims to determine the performance of co-operatives in Indonesia in terms of financial and non-financial aspects. The basic method of this research is analytical descriptive using secondary data from publications of the Ministry of Co-operatives and SMEs. Initially, data from 2000 to 2019 will be used, but from 2016 to 2019, the data is temporary so it cannot be compared with previous years which are fixed data. Financial performance is measured using DER, NPM, and ROE. Meanwhile, financial performance is known by various parameters, namely the number of active co-operatives, the number of inactive co-operatives, the proportion of inactive co-operatives to the number of co-operatives, the development of the number of members, the proportion of co-operatives conducting annual member meetings (RATs) to the number of active co-operatives, and the development of the number of managers ( managers and employees). The results showed that the financial performance of co-operatives in Indonesia showed positive developments or getting better. However, the capital structure of co-operatives over time is increasingly dominated by external capital which is generally in the form of debt. In the non-financial aspect, co-operatives in Indonesia show a declining development: The number of inactive co-operatives is increasing as the number of co-operatives increases, active co-operatives but not implementing RATs show an increasing tendency, the number of members decreases and labor absorption has not been able to be maximized due to limitations co-operatives both financially and organization readiness.

Linking Human Capital Resourcing Practices and Performance of Financial Cooperatives in Kenya: Does Presence of Formal Human Resource Department Matter?

Financial cooperatives are collectively one of the key drivers of Kenyan economy. Thus, this research sought to investigate the relationship between human capital (HC) resourcing practices and performance of these organizations. Performance as the dependent variable was conceptualized to have two dimensions, financial and non-financial. Data was collected from 340 financial cooperatives within Nairobi County. Simple random sampling technique was used in selecting organizations from where data was collected. Both interview and questionnaire methods were used to collect qualitative and quantitative data, respectively. The findings indicated that presence of formal HR department within an organization leads to better HC resourcing practices as compared to a situation where there is no formal HRM department. The study found a significant relationship between HC resourcing practices and performance of financial cooperatives. Further, the study recommends those organizations without formal HRM departments to create them. Additionally, so as to enjoy higher levels of performance and reduce labour turnover, financial cooperatives need to improve their HC resourcing practices.

Perbandingan Kinerja Keuangan Koperasi Konvensional Dan Koperasi Syariah Di Kota Bandar Lampung

There are 740 cooperatives registered in Bandar Lampung, but more than 50% are suspended. Of these, only a few are actively reporting their financial performance in the form of complete financial statements. Therefore the author assumes that it is important to analyze the comparison financial performance of conventional cooperative and of Islamic cooperatives in the city of Bandar Lampung. The overall financial performance of cooperatives is assessed based on the regulation of the State Minister for Cooperatives and Small and Medium Enterprises of Republic of Indonesia Number: 14 / PER / M.KUKM / XII / 2009. The assessment of cooperative health includes capital, quality of productive assets, management, efficiency, liquidity, independence and growth, and cooperative identity. To assess the financial performance of sharia cooperatives is based on the regulations of the Minister of Cooperatives and Small and Medium Enterprises No. 35.3 / Per / M.KUKM / X / 2007. In addition to cooperative health assessments covering capital, quality of productive assets, management, efficiency, liquidity, independence and growth, and identity of cooperatives, there is an assessment of compliance with Islamic principles. The objects in this study are cooperatives that actively reported their finances to the cooperative service in 2015 and 2016. There are 24 conventional and sharia cooperative financial reports analyzed. Based on the analysis, the financial performance of conventional cooperatives gets a final score of 67.15 while the sharia cooperative gets the final score amounting to 74.13. The value indicates that conventional cooperatives and Islamic cooperatives are equally healthy. Nevertheless, it can be said that the financial performance of Islamic cooperatives is better than that of conventional cooperatives.

Analisis Kinerja Keuangan pada Koperasi Karyawan Pertamina Lapangan Kamojang (Koperlak) Kabupaten Bandung

The number of cooperatives in Indonesia is one of the largest in the world, but its contribution is still lacking for the community. The financial performance of cooperatives is one of the things that needs to be highlighted, because by knowing the financial performance of a cooperative, it can be seen how good performance is for the progress of the cooperative which will also have an impact on society. This research was conducted to determine the financial performance of the Pertamina Field Kamojang Employee Cooperative (KOPERLAK) Kab. Bandung for the period 2011-2015. Tools used in analyzing this financial performance using ratio analysis, namely analysis of liquidity ratios, analysis of solvency ratios, and analysis of profitability ratios. The data used are the financial statements of the Pertamina Field Kamojang Employee Cooperative (KOPERLAK) Kab. Bandung for the period 2011-2015. To determine the level of liquidity using the calculation of Current Ratio and Cash Ratio. To determine the level of solvency using the calculation of the Debt To Total Assets Ratio and Debt To Equity Ratio. To determine the level of profitability using the calculation of Return On Investment and Return On Equity. The object of this research is Pertamina Field Kamojang Employee Cooperative (KOPERLAK) Kab. Bandung. The analytical method used is a descriptive method with a qualitative approach. The results of this study indicate that the Current Ratio is in a healthy condition, meaning that the current assets of the cooperative can guarantee its short-term liabilities (liquid), the Cash Ratio is in an unhealthy state, which means that cash and cooperative banks cannot guarantee their short-term liabilities (ilikuid), Debt To The Total Assets Ratio is in an unhealthy state, meaning that the total assets of the cooperative have not been able to guarantee the total debt of the cooperative (insolvable), the Debt To Equity Ratio is in an unhealthy state, meaning that the total capital of the cooperative has not been able to guarantee the total debt of the cooperative (insolvable), Return on Investment Being in an unhealthy condition means that the cooperative has not been able to use assets productively to produce maximum residual results, and Return On Equity is in a healthy condition, which means that the capital owned by the cooperative can produce maximum residual results of operations.

Management and financial performance of agricultural cooperatives: a case of Portuguese olive oil cooperatives

In Portugal, as in other countries, agricultural cooperatives have an important economic role in the food system. Similar to other economic organisations, agricultural cooperatives have witnessed structural changes in recent decades in terms of governance and/or management models. Portuguese agricultural cooperatives have been compelled by their context to adopt a traditional model of ownership and control. The main goal of this study was to analyse issues related to the management structure and financial performance of cooperatives, based on data collected for olive oil cooperatives located in the northern interior region of Portugal. Combining a qualitative analysis of structure and decision-making, a financial assessment and the application of a multi-criteria approach (PROMETHEE II), the overall results are in line with expectations (e.g. low levels of member participation, nonprofessional management, low profitability ratios, low leverage and an ability to fulfil financial commitments), except for the relationship between professional management and financial performance. The existence of professional management does not lead to better financial performance. This result reinforces the belief that cooperatives that are structured differently have different and conflicting stakeholder interests

Technical and scale efficiency of Tanzanian saving and credit cooperatives

The financial sector plays a critical role in economic growth and economic development (Beck & Levine 2004; Levine 1998). However, the impact of the financial sector on economic growth is realized if the sector is efficiently managed and well monitored. The corollary to this is that if the financial sector is not effectively monitored and regulated it may lead to economic crisis. As argued by Sufian (2011) the health of the financial sector is critical for the health of the economy at large. Given the relationship between the financial sector development and economic growth, knowledge about the efficiency of financial institutions and the underlying factors that influence efficiency is crucial. Such knowledge is necessary to provide insights for managers, regulators, policy makers and other stakeholders to formulate policies to improve the efficiency of the financial sector. Despite the importance of knowledge on health industry as articulated above, there is paucity of empirical literature on the performance of financial cooperatives in developing countries and Tanzania in particular. Thus, the objective of this paper is to empirically analyze the efficiency of Tanzanian Saving and Credit Cooperatives. Efficiency analysis was decomposed into three dimensions to explore possible sources of inefficiency. The first dimension was technical efficiency, which explored the overall effectiveness of transforming the productive inputs into desired outputs compared to the data-driven frontier of best practice. The second dimension was pure technical efficiency, which captured managerial efficiency in the intermediation process. The third dimension was scale efficiency, which explored whether firms were operating in an optimal scale of operation. The study used a sample of 103 audited financial statements during 2011. Data envelopment analysis was employed to explore the efficiency scores. The results show that average scores are 42%, 52% and 76% for technical, pure technical and scale efficiencies respectively. Since most of the inefficiencies are either technical or scale in nature, the study recommends increasing the operating scale for smaller firms. Firms operating beyond the optimal scale may need to downsize. Also the managers from technically inefficient firms should reduce the wastage of the productive resources by utilizing their inputs more efficiently.

Organizational and Financial Performance of Cooperatives in Misamis Occidental

This paper assessed the performance of the cooperatives using a surrogate measure of data roughness through fractal dimensions. Fractal dimensions as statistical quantities are robust measures which are not easily influenced by extreme observations unlike other variance-based performance measures. This study used the data of the 35 farmers’ cooperatives in Misamis Occidental provided by the Department of Agrarian Reform. The fractal dimensions on membership, farm and off-farm income of members, capital build up, savings mobilization, assets and liabilities were measured through the fractal software. The results revealed that all the variables mentioned had high fractal dimensions which implies volatility and unpredictability. In particular, the farm and non-farm incomes are unreliable as indicators of financial stability of the economic conditions of the member farmers.

Performance Measurement of the Agricultural Marketing Cooperatives: The Gap between Theory and Practice

The performance of agricultural cooperatives depends on their business objectives, which are defined in different ways in the literature. We review the theoretical literature on the performance of agricultural marketing cooperatives. Studies can be divided into two classes, those that assume a single objective and those that assume multiple objectives. This classification integrates three views of the cooperatives: ( a) vertical integration of firms, ( b) independent enterprise, and ( c) coalition of firms. Empirical studies on the financial performance of cooperatives are classified into two categories, studies based on the economic theory of the firm and studies that emphasize accounting techniques. Empirical studies have failed to address the cooperatives’ objectives as represented by the theoretical literature on cooperative performance.

The Power of Networks: Integration and Financial Cooperative Performance

Abstract**: The purpose of this paper is to perform a cross‐country survey of the level of integration of systems of financial cooperatives (FC) and its effect on measures of performance. We develop a classification scheme based on a theoretical framework that builds on published work using transaction cost economics (TCE) to explain integration of large numbers of financial cooperatives into networks. We identify three critical levels of increasing integration we call respectively atomized systems, consensual networks and strategic networks. Further, we test some of the propositions that result from the theoretical framework on an international sample of financial cooperative systems. Based on this analysis we can conclude that: (i) Integration is less (more) important in developing (more developed) countries and for very small (large) financial cooperatives as a determinant of efficiency. However, integration tends to reduce volatility of efficiency and performance regardless of development. (ii) Integration appears to help control measure of managers’ expense preferences that tend to affect performance of FC. (iii) Despite high costs of running hub‐like organizations in highly integrated system, these systems economize in bounded rationality and operate at lower costs than less integrated systems.

The Power of Networks: Integration and Financial Cooperative Performance

The purpose of this paper is to perform a cross-country survey of the level of integration of systems of financial cooperatives (FC) and its effect on measures of performance. We develop a classification scheme based on a theoretical framework that builds on published work using transaction cost economics (TCE) to explain integration of large numbers of financial cooperatives into networks. We identify three critical level of increasing integration we call respectively atomized systems, consensual networks and strategic networks. Further, we test some of the propositions that result from the theoretical framework on an international sample of financial cooperative systems. Based on this analysis we can conclude that: i) Integration is less (more) important is developing (more developed) countries and for very small (large) financial cooperatives as a determinant of efficiency. However, integration tends to reduce volatility of efficiency and performance regardless of development. ii) Integration appears to help control measure of managers' expense preferences that tend to affect performance of FC. iii) Despite high costs of running hub-like organizations in highly integrated system, these systems economize in bounded rationality and operate at lower costs that less integrated systems.

Governance, Regulation and Mutual Financial Intermediaries Performance

The paper presents results of a research on the the impact of the governance, regulatory and supervisory environment on the performance of financial cooperatives (FC). I seek to respond to two different questions. The first is whether there are clearly identifiable models of financial cooperative governance, regulation and supervision (R&S). The second is, assuming that such models are identifiable, whether it is possible to develop a methodology to evaluate the level of system-wide performance of these models in a credible manner. Based on an analysis of 16 cases of mature FC systems I obtain the following result. There appear to be two dominant models of governance, R&S, one that I call the federated-network model, and one that I call the atomized-competitive model. These two systems present certain constant characteristics accross groups of countrie that seem to be related to historical factors contributing to their development. Further, FC operating under one of those systems, the federated-network appear to display either equal or superior (but not inferior) levels of performance than those operating under the other.