A Study of the Factors Affecting to Net Profit of Savings Cooperatives: A Case Study of Granting and Not Granting Partial Share Withdrawals to Members

Abstract

This research article aimed to examine the factors affecting the net profit of Savings Cooperatives: A case study of granting and not granting partial share withdrawals to members. The data was collected from the Thai saving cooperatives, which had the highest shares capital totaling nine firms of observations from 2012 – 2021. The data were analyzed using Panel Data Regression with the Estimated Generalized Least Square: EGLS technique. The findings of the study indicate that dividend payouts, interest revenue and investment return significant positive impact on the net profit. In contrast, the shares capital had a significant negative impact on the net profit of Savings Cooperatives in both granting and not granting partial share withdrawals to members. The study found that Savings Cooperatives' profitability is positively influenced by current assets when shares are withdrawable. However, there is no relationship between the savings cooperative's net profit and current assets if shares are not withdrawable. When comparing the significance of the factors in each case, the study found that the factors studied have a more significant impact on the net profit of the Saving Cooperatives in the case of granting partial share withdrawals to members compared to the case of not granting such withdrawals.