Profitability Of Cooperatives Research Articles

Global efficiency and profitability: Cooperatives as social innovation agents vs. Joint stock companies in the agri-food sector

Cooperativism, as an agent of social innovation, significantly contributes to fostering a dynamic economy and plays a fundamental role in rural areas. Analyses of profitability in cooperatives versus Investor-Owned Firms (IOFs) show disparate results depending on the methodology and indicators used. This disparity of results is largely due to the fact that common indicators are used in the business sphere that do not take into account the duality of investor-supplier members in cooperatives. This paper deals with a comparative analysis of the efficiency and profitability of cooperatives and IOFs, which takes into account the cooperative specificity as far as partner-producer duality is concerned. The populations analyzed are the olive oil producing companies in Andalusia and the methodology used is twofold: DEA, in the case of efficiency, and probit regression for the analysis of profitability. For the latter, a cooperative global profitability indicator has been defined. The results point to a superiority of the cooperatives in terms of both efficiency and overall profitability compared to the IOFs, which denotes a greater capacity to better remunerate the producer, especially in smaller companies. However, this superiority disappears as the cooperative gains dimension. Our findings show that the relative performance of cooperatives and IOFs varies by size. This reality warrants the attention of both society and governments, prompting the need for the development and implementation of public policies aimed at their growth and safeguarding. Additionally, it initiates a pathway for further research into other sectors of activity.

The Effect of the Covid-19 Pandemic on Financial Profitability at the Balo' Ta Savings and Loan Cooperative

This research aims to ascertain and evaluate the profitability of financial statements pertaining to the Balo ‘Ta Savings and Loan Cooperative for the period 2019-2021, both prior to and throughout the COVID-19 pandemic. Research findings and data analysis indicate that the financial profitability of the Balo ‘Ta savings and loan cooperative has fluctuated between increasing and decreasing in response to the COVID-19 pandemic. The profitability of cooperatives is assessed through the utilization of return on equity, return on assets, net profit margin, and operating profit margin metrics. In contrast, the gross profit margin exhibited a decline over the course of 2019 to 2021.

A Study on Non-Performing Asset at Co-Operative Societies in India

The performance of a country's financial system reflects in a country's growth. India is striving to be one of the developed countries. Our country is going through many changes as it strives to be at the top of the world. The financial system is the mainstay of any country in India and the banking system plays an important role in the financial system. In a country like India, where 70% of the population lives in rural areas agriculture is a main occupation, which accounts for more than 30% of GDP. Banks and cooperatives in the public and private sectors play an important role in accelerating credit services to rural areas. India has 12 public sector banks, 22 private sector banks, 42 foreign banks, 56 regional rural banks, 1485 urban cooperative banks 96000 rural cooperative banks in addition to Credit Cooperative Bank. The obstacle for cooperative societies and banking institutions is NPA non-performing assets. The focus of this paper is to study NPA in Indian cooperatives and the impact of NPA on the profitability of cooperatives, the remedies for NPA problems to improve the performance of cooperatives.

ANALISIS RISIKO KREDIT DAN TINGKAT EFISIENSI OPERASIONAL TERHADAP PRFITABILITAS PADA KOPERASI DI KOTA MATARAM

The purpose of this study was to determine the effect of credit risk and the level of operational efficiency on the profitability of cooperatives in the city of Mataram. This study uses quantitative analysis with an associative approach. The type of data used is secondary data with data processing using the SPSS version 25.0 program. Data collection techniques used are observation and documentation. The samples used were five cooperatives with a purposive sampling technique with certain criteria. The data analysis used is multiple linear regression analysis with a determination coefficient of 55.90% on profitability. The results of the t-test stated that credit risk had no significant effect on profitability, while the level of operational efficiency had a significant effect on the profitability of cooperatives in the city of Mataram. The results of the F-test show that credit risk and the level of operational efficiency jointly affect the profitability of cooperatives in the city of Mataram.

A STUDY ON FINANCIAL PERFORMANCE OF SELECTED COOPERATIVE SUGAR COMPANIES OF GUJARAT.

The sugar business is a significant part of the agricultural sector that has an effect on the way of life in rural areas for over 50 million sugarcane growers and approximately 5 lakh workers who are directly employed in sugar mills. As of the 31st of July, 2017, the country has a total of 732 operational sugar factories, each of which had adequate crushing capacity to generate around 339 lakh MT of sugar. The capacity is more or less split evenly between the units that belong to the private sector and the units that belong to the cooperative sector. The objective of the study was to investigate the profitability of sugar cooperatives located in the state of Gujarat. The sugar business is fundamentally unstable, and it engages in the commercial exploitation of rural resources in order to satisfy the demand for sugar while simultaneously producing surplus energy in order to satisfy the growing need for energy. For the purpose of this investigation, three cooperative businesses situated in Gujarat were chosen. In this study, an analysis was performed using the financial data of three different co-operative sugar enterprises for the years 2016–2017 through 2020–21. In order to conduct an examination of the financial data of three different co-operative sugar businesses, the techniques of ratio analysis and Anova testing were utilised.

Internal and external factors related to the Return On Equity (ROE) of Ecuadorian Savings and Credit Cooperatives, Segment 1, Period 2014 – 2020

Savings and Credit Cooperatives in Ecuador play a very important role in the socioeconomic development of communities, productive associations and other niches that are not financially served by traditional private banks, both national and foreign. In fact, the financial inclusion of productive and consumer units in the rural sector - above all - depends on the economic and financial sustainability of these entities. In this context, it is important to know how profitable cooperatives are in Ecuador, identifying those factors, internal and external, that explain such profitability; for this reason, this article aims to analyze the relationship between internal factors such as liquidity, management and solvency indicators; and external factors such as inflation and real GDP with the profitability of cooperatives, segment I, measured through the Return On Equity (ROE). Using econometric techniques, it is found that the country's production level and the generalized price level as external factors, maintain a statistically significant relationship with respect to the ROE of the cooperatives.

ANALISIS KINERJA KEUANGAN PADA KOPERASI SIMPAN PINJAM “WANITA KARYA LANGA” KECAMATAN BAJAWA KABUPATEN NGADA

The purpose of this study was to determine the financial performance of the Karya Langa Women's Savings and Loans Cooperative, Bajawa District, Ngada Regency in 2019-2021. This type of research is Descriptive Research. This research was conducted at the Karya Langa Women's Savings and Loans Cooperative, Bajawa District, Ngada Regency with the sample being the balance sheet report and remaining business results for 2019, 2020 and 2021. the results of the analysis in the balance sheet report and remaining operating results for 2019-2021 are: 1. The current ratio value from 2019 reached 227% with very good criteria, then in 2020 it reached 226% with very good criteria, and in 2021 it reached 159% with pretty good criteria. Thus the cooperative's liquidity for three years in terms of the current ratio can be declared healthy in meeting short-term debt and current assets owned by the cooperative. 2. The debt ratio in 2019 was 76.10% with unfavorable criteria; in 2020 it is 75.25% with not good criteria; and in 2021 it is 72.17% with unfavorable criteria. Thus the solvency of the cooperative for three years in terms of the debt ratio can be declared not yet solvable in fulfilling its debts. 3. The value of return on equity in 2019 was 6.77% with unfavorable criteria; in 2020 it is 1.26% with bad criteria and in 2021 it is 1.28% with bad criteria. Thus the profitability of cooperatives for the last three years has not been profitable in producing SHU.

Tripartite evolutionary game and simulation analysis of fishermen participating in cooperative management under government supervision

The construction of fishermen's organizations is an important way to extend and consolidate the fishery industry chain and speed up the modernization of fisheries. The Chinese government encourages the establishment of new fishery business entities in the form of fishermen's professional cooperatives. However, in the implementation of the policy, the coexistence of demonstration cooperatives and “empty shell” cooperatives is common. To explore the factors that affect the participation of fisheries in cooperative management under government supervision, by constructing a tripartite evolutionary game (TEG) model among fishermen, cooperatives and government departments, this paper analyzes the evolutionary stability of the three-party strategy selection of the game, discusses the influencing factors and their relationships to the three-party strategy selection, analyzes the stability of the equilibrium point in the game system, and uses MATLAB 2017A to conduct simulation analysis. The results show that first, increasing the income of cooperative operations, reducing the cost of close cooperation and increasing the amount of regulatory penalties contribute to the close cooperation of cooperatives. Second, the profitability of cooperatives and the reduction of fishermen's cooperation costs are key factors in promoting cooperation. Third, the interaction of the two key factors of cooperative profits and fishermen's cooperation costs will affect the strategic choices of the three parties in the game. Fourth, support funds have a two-way impact on the choice of three-party strategies. Finally, this study provides policy suggestions for the government to encourage fishermen to participate in cooperatives.

INFLUENCE OF THE STATE SUPPORT ON THE PROFITABILITY OF THE COOPERATIVES IN THE SOUTH-EAST REGION OF THE REPUBLIC OF BULGARIA

Agriculture is important for the sustenance of any country. But the incomes realized by agricultural producers are lower compared to those obtained in other sectors. The predominant representatives in the sector are micro and small enterprises. They do not have sufficient financial means to make the necessary investments in the enterprise's activity process, and their access to external financing is very limited. This necessitates the key role of state intervention in order to preserve the well-being and development of agriculture in the country. By providing state support to cooperatives, the sustainable development of agricultural producers is promoted. It aims to support the economic development of rural areas and to increase the competitiveness of agriculture in general. Based on the results obtained from the applied regression model with fixed effects, evidence is found for the positive influence of state support on the profitability of agricultural cooperatives in the South-East region of the Republic of Bulgaria. It is established that the innovation and investment activity, as well as the size of the agricultural cooperatives in the South-East region of Bulgaria, are statistically significant indicators that influence the receipt of state support.

Determinants of Profitability and Financial Sustainability of Saving and Credit Cooperatives in Eastern Ethiopia

This study investigated the determinants affecting financial sustainability and profitability of saving and credit cooperatives (SACCOs) in Eastern Ethiopia using unbalanced panel data of 43 SACCOs from 2015 to 2019. To realise the stated objective, a quantitative approach and an explanatory design were employed using secondary data sources mainly from audited financial statements of the SACCOs during the study period. The analysis revealed that SACCOs in Eastern Ethiopia are not profitable but financially sustainable. The robust random effect model result shows that deposit mobilisation, loan-to-deposit ratio and managerial efficiency have a statistically significant and positive effect on the profitability of SACCOs, while operational efficiency has a statistically significant and negative effect. Likewise, the leverage ratio and the number of active borrowers (a proxy of breadth outreach) have a statistically significant and positive effect on the financial sustainability of SACCOs in Eastern Ethiopia. However, operational efficiency and size have a statistically significant but negative effect on SACCOs’ financial sustainability. Finally, the study suggests that SACCOs in Eastern Ethiopia should perform their conventional activities such as saving mobilisation and credit provision properly to be financially healthy.

Effect of Outreach on Financial Sustainability and Profitability of Saving and Credit Cooperatives in Eastern Ethiopia

This study scrutinized the effect of outreach on financial sustainability and profitability of SACCOs in Eastern Ethiopia using balanced panel data from 33 SACCOs over the period of 2017-2019. Quantitative approach and explanatory design was employed to realize the stated objective. This study used secondary data sources mainly audited financial statements of the SACCOs in the study period. The analysis revealed that SACCOs in Eastern Ethiopia are profitable but not financially sustainable. The random effect model result shows that gross loan to asset ratio, the yield on the gross loan portfolio, managerial and operational efficiency has a statistically significant and positive effect on the financial sustainability of SACCOs while average loan size has a statistically significant but negative effect. Likewise, gross loan to asset ratio, managerial efficiency, and average loan size has a statistically significant and positive effect on the profitability of SACCOs in Eastern Ethiopia. However, a portion of women borrowers and the number of active borrowers has a statistically significant but negative effect on the profitability of the SACCOs in the study area. Finally, the study suggests that increasing the number of borrowing clients and sales volume (loan portfolio) could benefit SACCOs in Eastern Ethiopia from the economics of scale. Keywords: Eastern Ethiopia, Financial sustainability, Outreach, Profitability, SACCOs DOI: 10.7176/RJFA/11-15-02 Publication date: August 31 st 2020

PENGELOLAAN MODAL KERJA SEBAGAI UPAYA MENINGKATKAN NILAI PROFITABILITAS DAN TINGKAT LIKUIDITAS KOPERASI

This study aims to determine the management of working capital because it is very important for cooperatives in carrying out its operations to improve the profitability of cooperatives and can also maintain the level of cooperative liquidity. This type of research is qualitative descriptive with a quantitative approach. The results of this study showed under the working capital of Indonesian officials of Universitas Brawijaya Malang derived from members and capital of their own. The profitability of cooperatives in three years was increased in this case Due to the rise of assets from the net profit after tax while the liquidity is fluctuating due to the reduced cooperative cash used to fulfill a short-term obligation that results in declining liabilities The short-term cooperative in three years was in 2016 until 2018.

Effect of Outreach on Financial Sustainability and Profitability of Saving and Credit Cooperatives in Eastern Ethiopia

This study scrutinized the effect of outreach on financial sustainability and profitability of SACCOs in Eastern Ethiopia using balanced panel data from 33 SACCOs over the period of 2017-2019. Quantitative approach and explanatory design were employed to realize the stated objective. This study used secondary data sources, mainly audited financial statement of the SACCOs, in the study period. The analysis revealed that SACCOs in Eastern Ethiopia are profitable but not financially sustainable. Random effect model results show that gross loan to asset ratio, yield on gross loan portfolio, managerial and operational efficiency has statistically significant and positive effect on the financial sustainability of SACCOs, while average loan size has statistically significant but negative effect. Likewise, gross loan to asset ratio, managerial efficiency, and average loan size has statistically significant and positive effect on the profitability of SACCOs in Eastern Ethiopia. However, the portion of women borrowers and number of active borrowers has statistically significant but negative effect on the profitability of the SACCOs in the study area. Finally, the study suggests that increasing the number of borrowing clients and sales volume (loan portfolio) could benefit SACCOs in Eastern Ethiopia from economics of scale.

ASSESSMENT OF THE IMPACT OF THE ORGANIZATIONAL AND LEGAL STATUS OF LAND ON THE EFFICIENCY OF LAND USE IN AGRICULTURAL PRODUCTION COOPERATIVES

The article considers changes in the legislation on the circulation of agricultural land, which are aimed at stimulating the development of property institutions and land leases, as well as modern trends in the organizational and legal relations between owners and tenants of agricultural land. The contribution of the resource potential of agricultural production cooperatives to the development of the resource base of agriculture has been assessed using the example of the Udmurt Republic. Factors of organizational and legal order have been identified, which affect the level of development of internal production cooperation. The impact of organizational and legal factors concerning the registration of land plots on the effectiveness of agricultural production cooperatives has been analyzed and assessed. The factor that characterizes the relationship between the level of legal registration of land and the efficiency of land use is justified. It is recommended to apply this factor to adjust various estimates of land turnover. There is a weak relationship between the organizational and legal forms of land management and the profitability and current liquidity of cooperatives in relation to the municipal districts of the Udmurt Republic. Conclusions are drawn on the state and trends of development of intra-industrial cooperation.

Heterogeneity of associates, capital structure and profitability of non-financial cooperatives in Colombia

Esta investigación tiene como objetivo estudiar la estructura de capital y rentabilidad en organizaciones cooperativas. Con una base de datos de 199 cooperativas colombianas no financieras en el periodo 2009-2013 y estimando modelos panel, se encuentra que variaciones en la heterogeneidad socioeconómica de los asociados afecta la estructura de capital de largo plazo en 23%, la estructura de capital de corto plazo en 13% y la rentabilidad en 6%. Se concluye que el principio de libre entrada y salida de personas de organizaciones con propiedad colectiva y gobierno democrático incide en los indicadores financieros de la organización.

Factors that Influencing the Profitability of Saving and Credit Cooperatives: The Case of Boloso Sore District, Wolaita Zone, Southern Region, Ethiopia

Savings and credit cooperatives are user-owned financial intermediaries. They have many names around the world, including credit unions, SACCOs, etc. Members typically share a common bond based on a geographic area, employer, community, or other affiliation. Members have equal voting rights, regardless of how many shares they own. Savings and credit are their principal services, although many offer money transfers, payment services, and insurance as well. Sometimes savings and credit cooperatives join together to form second -tier associations for the purposes of building capacity, liquidity management, and refinancing. The study was undertaken to identify factors influencing of profitability of saving and credit cooperative in Boloso Sore Woreda Wolaita zone, Southern Ethiopia .The general objective of the study was to identify factors that influencing the profitability of saving and credit cooperatives. A multistage sampling technique was employed to select 305 households from the in order to respond questionnaire. Both quantitative and qualitative data were collected from sampled households. Both descriptive and econometric data analyses techniques were applied. The findings of this study showed that, from the eleven independent variables seven of them significantly affect the profitability of saving and credit cooperative were age, education status, training access, family size, loan repayment, saving habit and service delivery. From this variables training access and service delivery system highly affects the profitability of saving and credit cooperatives. Cooperative development office should train SACCO’s members regarding the merit of profitability of saving and credit utilization methods and service delivery showed significant influence on SACCO’s member’s profitability positively that results increments in profitability. So this requires SACCO’s should have to be improved in quality of rendering service relating to service delivery as per established standards on behalf of rules and regulations of SACCO’s. Keywords: Saving, credit, cooperatives profitability DOI : 10.7176/EJBM/11-19-04 Publication date :July 31 st 2019

새마을금고 수익성 결정요인에 관한 실증적 연구

본 연구는 새마을금고의 수익성을 결정하는 영향요인을 실증적으로 확인하기 위하여 2010년부터 2017년까지 8년간의 1,154개의 개별 새마을금고의 균형 패널자료에 대하여 고정효과모형으로 추정하여 분석을 실시하였으며, 주요 분석결과는 다음과 같다.BR 첫째, 대출금비중은 위험에 대한 대용치로 볼 수 있으며, 금고의 위험이 증가하면 수익성이 높아진다는 점은 Abreu and Mendes(2002)의 주장을 지지하는 것이다. 둘째, 금융자산 투자수익비율이 새마을금고의 수익성에 유의적인 양(+)의 영향을 주는 것으로 나타났는데, 이는 새마을금고가 전통적인 금고의 업무인 대출업무 이외에 새로운 형태의 금고업무인 금융자산에 대한 투자에서도 이익을 얻고 있다는 점을 보여주는 것이다. 셋째, 수지비율은 새마을금고의 경영효율성을 나타내는 지표인데, 이러한 지표가 수익성에 유의적인 양(+)의 영향을 준다는 점은 Goddard et al.(2009)의 연구결과를 지지하는 것으로, 새마을금고가 경영효율성을 금고의 수익성으로 연계할 수 있는 체계를 구축하고 있다고 평가할 수 있는 것이다. 넷째, 부동산자금 대출비중은 새마을금고의 ROA에는 유의적인 양(+)의 영향을 주고 있지만, ROE에 대한 유의성은 없는 것으로 나타나고 있다. 다섯째, 금고규모와 자기자본비율은 금고의 ROA에는 유의적인 양(+)의 영향을 주지만, 금고의 ROE에는 반대로 유의적인 음(-)의 영향을 주는 것으로 나타나고 있다. 이러한 분석결과는 새마을금고의 경영자들이 평가하는 성과지표의 목표를 ROE가 아닌 ROA에 두고 있을 가능성을 보여주는 것이다. 여섯째, 새마을금고를 지역과 직장별로 2개의 집단으로 구분하여 분석한 결과, 직장 새마을금고에서는 부동산자금 대출이나 공제수수료 수익 등의 전통적인 금고업무인 대출 이외의 활동이 ROA에 크게 기여하지 못하는 것으로 나타나고 있다는 점을 확인할 수 있다. 일곱째, 새마을금고를 도시와 농촌으로 2개의 집단으로 구분하여 분석한 결과, 전체 자료에서의 ROA 결정요인은 주로 도시 새마을금고의 분석결과와 일치하는 것이며, 농촌 새마을금고에서는 부동산자금 대출의 유의성이 없는 반면에, 공제수수료 수익비율의 영향이 유의적으로 나타난다는 것을 확인할 수 있다.

Cooperatives and crisis: economic dynamics in Italian context

This paper focuses on the situation in Italy with specific reference to cooperatives. It aims to analyse their economic situation - represented by two profitability ratios (ROI, ROE) - during the decade 2004-2013. It aims to tests the impact of crisis, geographical area and belonging business sector. Starting from secondary data on AIDA database (at the end 1,446 cooperatives), the trend analysis and analysis of variance (ANOVA) have been used. The findings show, first of all, that the profitability of cooperatives strongly affected by crisis. Secondly, only the business sector affects the level of profitability. The analysis is interesting because the income has a special meaning in cooperatives: it should, in fact, be added to benefiting members that are accounted for as 'peculiar' management costs.

PROFITABILITY OF AGRICULTURAL COOPERATIVES. SELECTED METHODICAL ASPECTS OF MEASUREMENT AND ANALYSIS

The analysis of profitability enables the assessment of business efficiency while also providing information on the company’s current economic situation and further development opportunities. The purpose of this paper is to identify the definitional and analytical problems related to the profitability of agricultural cooperatives, and to exemplify the possible solutions. The sample used in this study consists of ca. 100 agricultural production cooperatives based in Poland. Trend extrapolation and analysis of variance and correlation were the techniques employed to investigate the profitability (ROE, ROA, ROS, VI) and its relationship with main lines of production and the size (UAA) and quality (soil valuation index) of agricultural land. The results of research allowed to conclude that the profitability of agricultural cooperatives is decreasing each year; it does depend neither on the main line of production nor on the size and quality of agricultural land. The need for an in-depth study of profitability of agricultural cooperatives was pointed out. It was also stated that the potential determinants of profitability may include management quality and other internal and organizational issues.

Las estrategias financieras y el patrimonio de las cooperativas de ahorro y crédito en un contexto de economia popular y solidaria

In the present research the financial strategies and the patrimonial increases of the savings and credit cooperatives of segment two of the Canton Ambato are analyzed, for which it was decided to study the financial strategies that obtained the greatest impact in the increase of the patrimony, financial indicators were applied to determine if the equity increased during the year 2015. This problem is affected in the profitability of cooperatives, thus reducing their competitiveness and ability to stay in the cooperative market. One of the most important indicators is the patrimonial sufficiency that relates the technical patrimony constituted and the assets and contingents weighted by risk, in which the law requires a minimum of 9% of this indicator to be maintained to support the institution's current and future operations. It was also analyzed whether the cooperatives comply with the regulations established by the Monetary and Financial Organic Code and the Law of Popular and Solidarity Economy for the strengthening of patrimony, utilities and irreparable legal reserve fund. We conclude that financial strategies have a significant impact on the assets of cooperatives, and propose an operational model for the financial strategies and the increment of the patrimony that will allow to fulfill all the objectives established by each cooperative entity.In the present research the financial strategies and the patrimonial increases of the savings and credit cooperatives of segment two of the Canton Ambato are analyzed, for which it was decided to study the financial strategies that obtained the greatest impact in the increase of the patrimony, financial indicators were applied to determine if the equity increased during the year 2015. This problem is affected in the profitability of cooperatives, thus reducing their competitiveness and ability to stay in the cooperative market. One of the most important indicators is the patrimonial sufficiency that relates the technical patrimony constituted and the assets and contingents weighted by risk, in which the law requires a minimum of 9% of this indicator to be maintained to support the institution's current and future operations. It was also analyzed whether the cooperatives comply with the regulations established by the Monetary and Financial Organic Code and the Law of Popular and Solidarity Economy for the strengthening of patrimony, utilities and irreparable legal reserve fund. We conclude that financial strategies have a significant impact on the assets of cooperatives, and propose an operational model for the financial strategies and the increment of the patrimony that will allow to fulfill all the objectives established by each cooperative entity.