Determinants of Liquid Assets in Large Savings Cooperatives from 2019-2023

Abstract

This article aimed to study the factors affecting the liquidity of assets in large savings cooperatives. The study employs multiple regression analysis using the stepwise method. The data were obtained from the financial statements of large savings cooperatives as presented in their annual reports. The cooperatives included in the study are those that operated during the fiscal years 2019–2023, totaling 141 cooperatives. Total assets (TA) are included as a control variable in the analysis. The study found that the factors influencing the level of liquidity assets in large savings cooperatives include The Current Ratio (CR) shows a statistically significant positive effect, with a coefficient of 1.305, indicating a positive impact on maintaining liquidity assets in large savings cooperatives. This reflects their ability to meet short-term debts promptly. Furthermore, the Deposit to Assets Ratio (DOA) also positively affects the level of liquidity assets, with a coefficient of 1.929 and statistical significance. This indicates that cooperatives with higher member deposits naturally maintain greater liquidity assets for effective management. This indicates that when cooperatives have a strong ability to meet short-term obligations or receive a large amount of deposits from members, they tend to possess higher liquidity assets for management and operations. This study reflects a management structure that prioritizes stability over profit maximization in cooperatives.