IDEAS home Printed from https://ideas.repec.org/a/ids/ijbire/v31y2023i4p493-514.html
   My bibliography  Save this article

Capital structure and cooperative unions' financial performance in southwest Ethiopia

Author

Listed:
  • Bayelign Abebe
  • Ayalew Ali

Abstract

The purpose of this paper was to ascertain the effects of capital structure on the financial performance of cooperative unions. The financial performance was measured using return on asset (ROA) and equity (ROE) while the capital structure was measured using debt ratio, asset tangibility, liquidity ratio and asset size. The examination utilised a unique board model of cooperative unions for the time of 2015 to 2020. The examination uncovered that debt ratio, asset tangibility, and liquidity proportion has a noteworthy and beneficial outcome on the financial performance of cooperative unions. However, asset size has a negative and critical impact on the financial performance measured both in ROA and ROE. The investigation presumes that capital structure has a noteworthy impact on the financial performance of cooperative unions. At long last, the investigation suggests that cooperative unions ought to have an ideal capital structure so as to upgrade the money-related execution and make the colossal incentive to its members.

Suggested Citation

  • Bayelign Abebe & Ayalew Ali, 2023. "Capital structure and cooperative unions' financial performance in southwest Ethiopia," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 31(4), pages 493-514.
    • Handle: RePEc:ids:ijbire:v:31:y:2023:i:4:p:493-514
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=134143
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbire:v:31:y:2023:i:4:p:493-514. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=203 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.