A study on financial performance of cooperative societies in Nepal

Gyanendra Prasad Paudel ()

Journal of Contemporary Research in Business, Economics and Finance, 2024, vol. 6, issue 2, 45-58

Abstract: This article delves into the financial performance of cooperative societies in Nepal, honing in on liquidity, leverage, and risk management. Employing a robust methodology encompassing descriptive, financial ratio, correlation, and regression analyses, the study is centered on cooperatives in Kathmandu. The sample, carefully selected to represent approximately 10% of total cooperatives, is derived from a combination of primary and secondary data sources. The analysis extends to various dimensions including organizational structure, loan investment procedures, and credit risk management practices within these cooperative societies. Through regression models, the study uncovers significant relationships between financial performance indicators such as return on assets, net profit margin, net interest margin, and return on equity, and a multitude of factors. One of the key findings underscores the critical importance of effectively managing leverage and liquidity to bolster cooperative profitability. This not only highlights the financial health of these cooperatives but also sheds light on their operational efficiency and risk resilience. By integrating both primary and secondary data sources, the study offers a comprehensive exploration of critical aspects related to cooperative financial performance. It provides valuable insights into effective strategies for optimizing leverage and liquidity within these cooperative societies, which can serve as a roadmap for enhancing their sustainability and resilience in the face of economic challenges.

Keywords: Financial performance; Investment risk; Leverage risk; Liquidity risk. (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ajp:jcrbef:v:6:y:2024:i:2:p:45-58:id:986

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