Effect of Equity Capital, Non-Performing Loans, and Member Participation on Cooperative Surplus

Abstract

This study aims to analyze the effect of equity capital, non-performing loans, and member participation on the cooperative surplus (Sisa Hasil Usaha/SHU) of Dewi Kunti Women’s Cooperative in Panggungharjo, Yogyakarta. The research adopts a quantitative approach using primary data collected from 100 cooperative members through questionnaires and secondary data from financial reports and annual member meeting reports of Dewi Kunti Cooperative from 2018 to 2021. The data analysis techniques include descriptive statistics and Structural Equation Modeling (PLS) to assess validity, reliability, and the structural relationships among variables. The findings reveal that equity capital, non-performing loans, and member participation have a positive and significant impact on cooperative surplus. The R-Square value of 0.472 indicates that the independent variables explain 47.2% of the variation in SHU, while the remaining 52.8% is influenced by other factors not examined in this study. These results highlight that strengthening internal capital, implementing effective credit risk management, and enhancing member participation contribute significantly to cooperative performance and sustainability. The originality of this research lies in examining the simultaneous influence of these variables within a women-based community cooperative context, offering both theoretical enrichment for cooperative studies and practical insights for managerial strategy development