Determinants of the financial performance of cooperatives in selected towns of Quezon, 2014

Date

6-2016

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Prodenciano U. Gordoncillo

Abstract

A cooperative is mainly established to provide help to those who live in rural areas and those who belong to lower income class. However, cooperatives have always been difficult to sustain in the Philippine since they do not usually aim for high profits but are more focused on uplifting the socio-economic status of the people in their community. While there are cooperatives that perform very well, there are also some that fail favor varying reasons. Thus, this study was conducted to determine the factors affecting the financial performance of the cooperatives, specifically in Quezon Province. Managers of the cooperatives were chosen to be the respondents for the study using a pre-tested questionnaire to provide a different insight regarding the determinants of the financial performance of a cooperative. Analytical tools such as descriptive, statistics, financial ratios, Fisher's exact test and linear by linear association test were used in this study. The factors considered were divided into three parts: the socio-demographic profile of the managers, business characteristics of the cooperatives and the evaluated performances within the cooperatives. The results of the study revealed that the financial performance of cooperative is generally associated with the age and training experience of the manager, the cooperatives year of operation, membership and borrower sizes, maximum allowable amount of loans, technology adoption, the presence of government support, members participation and loan repayment performance, and the performance of the management team and its board of directors. Based from the result of this study, it is recommended that cooperatives promote or hire a manager that is passionate, competent and committed to the task at hand. Furthermore, the Commission on Higher Education could create an entirely new curriculum for the universities that specializes in cooperative studies for young people who want to venture into this industry. It is also encouraged that cooperatives invest more in technological innovations for better record keeping and faster transactions and also formulate a more suitable payment scheme for their borrowers to prevent loan repayment delinquencies. And lastly, it is recommended that other government agencies be involved in cooperative management together with the Cooperative Development Authority to provide further assistance from the government.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2016 A14 J63

Document Type

Thesis

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