Determinants of Operational Performance of Saving & Credit Cooperative Societies in Addis Ababa in Case of Nifas Silk Lafto Sub City
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Date
2024-06-30
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A.A.U
Abstract
Where unemployment, poverty and inflation are rampant like a country of ours, Ethiopia, credit and saving cooperatives societies provide indispensable benefits to tackles unemployment, poverty and provides some degree of relief from this excruciating inflation. Therefore, this study explores the determinants of operational performance of Saving & Credit Cooperative Societies in Addis Ababa in case of Nifas Silk Lafto Sub City. This research was guided by cost of capital theory, liquidity theory, theory of cooperatives and social capital theory. The researcher adopted both descriptive and inferential research design. The target population consist of 145 saving and cooperative managers and team leaders. Descriptive analysis and multiple regression model were used to analyze data where the dependent variable is operational performance (Return on Asset - ROA) of Saving and Credit Cooperative Societies was regressed against the independent variables (Internal Control Practices, Risk Management, Core Capital Management, Dividend Policy, and Capitalization). From descriptive statistics & regression result this study, out of six independent variables, the effect of Core Capital Management was the most significant, followed by Internal Control Practice, Dividend Policy, Capitalization, Cost of Finance and then Risk management. The research recommends the Saving & Credit Cooperatives need to put more focus on improving the Core Capital Management, put efficient internal control mechanisms and boost their efficiency in controlling their cost of capital by boosting their members savings and reinvestment of dividends, enhance their investment to expand the level of return in order to improve their operational performances