Asmamaw Teshamahu Wassie

Analysis of Cooperative Performance and Members' Participation Asmamaw Teshamahu Wassie

This Book provides information for policy maker to design strategies that enhance cooperative members participation and improvement of financial conditions. The ratio analysis of financial performance of the cooperative under study use three methods: liquidity(current ratio), financial leverage management analysis (debt/asset ratio) and profitability ratio. The current ratio analysis result of the study shows the business is liquid; nevertheless the leave rage management analysis of debt/asset ratio results show the proportion of its asset financed by creditors is at its higher rate. The result of the profitability analysis shows the financial performance of the cooperative is improving. The study also employed Heckman two stages model to analyze members decision and intensity/level of participation with their cooperative. The first stage is the likelihood members decision. The second stage is the OLS estimation determinants the sales intensity: p(xi) = 0.112X1 + 0.433X2 + 0.838X3 + 2.423X4 + 2.194X5 + 1.040X6. This in turn empowers cooperative members' to claim their right in return surplus/ dividend in proportion to their participation.