Cooperative enterprises have been recognized as a democratic entity organization. The financial statement is practically prepared for internal users (cooperative members) and for external users (The Cooperative Commission Malaysia (SKM)). The financial statement is a map to understand and measure the financial health of a cooperative. Financial ratio analysis has received the attention in determining detailed coverage of the cooperative liquidity, resources and operations. Report prepared from financial ratio analysis is extensively accepted whether it is a large or small company. This paper indicate financial and non-financial indicators that most importantly reflect business and can be used to examine the performance of cooperatives, most importantly to indicate which financial ratios that reflect business and financial position of cooperatives. Given the recent rapidly increased number of cooperative established with increased number of cooperative members and expectation of performance stability in Malaysia, it becomes a relevant subject matter to conduct this study.
1. Altman, E. I. (1968). Financial ratios, discriminant analysis and the predication of corporate bankruptcy. The Journal of Finance, 23 (4), 589-609.
2. Beaubien, L. & Rixon, D. (2012). Key Performance Indicators in Co-operatives: Direction and Principles. Journal of Co-operative Studies 45 (2): 5-15.Chen, K. H. and Shimerda, T. A. 1981. An Empirical Analysis of Useful Financial Ratios. Financial Management, 81 (10), 51-60.
3. Dalnial, H., Kamaluddin, A., Sanusi, Z. M. & Khairuddin, K. S. (2014). Detecting fraudulent financial reporting through financial statement analysis. Journal of Accounting and Economics, 12 (1), 15-36
4. Delen, D., Kuzey, C., Uyar, A. (2013). Measuring firm performance using financial ratios: A decision tree approach. Expert System with Applications, 40, 3970-3983
5. Gentzoglanis, A. (1997). Economic and financial performance of cooperatives and investor-owned firms: an empirical study. In J. Nilsson & G. van Dijk (Eds.) Strategies and structures in the agro-food industries. Assen: Van Gorcum, 171-83.
6. Harris, A. and Fulton, M. (1996). Comparative financial performance analysis of Canadian cooperatives, investor-owned firms and industry norms. Occasional Paper Series, Saskatoon, Canada: Centre for the Study of Cooperatives.
7. Hassan, N. L. And Mat Noh, M. (2005). The Financial Performance of Co-operatives in Kedah State with Relation to Industry and Size. Working Papaer Series No. 14/2005
8. Holsapple, C. W. and Wu, J. (2011). An elusive antecedent of superior firm performance: The knowledge management factor. Decision Support System, 52 (1), 271-283.
9. Kaur, I. (2006). Performance Measurement: An Evaluation of Co-operative Performance in Malaysia. Malaysian Journal of Cooperative Management, 1-17
10. Kalogeras, N., Baourakis, G., Zopounidis, C. and Van Dijk, G. (2005). Evaluating the financial performance of agri-food firms: A multicriteria decision-ad approach. Journal of Food Engineering, 70, 365-371.
11. Kumar, P. Ravi, and Vadlamani Ravi. (2007) Bankruptcy prediction in banks and firms via statistical and intelligent techniques–A review." European journal of operational research 180(1): 1-28.
12. Lerman, Z. and Parliament, C. (1990). Size and industry affects in the performance of agricultural co-cooperative. Agricultural Economics, 6, 15-29.
13. McKee, G. (2008). The Financial Performance of North Dakota Grain Marketing and Farm Supply Cooperatives. Journal of Cooperatives, 21, 15-34.
14. Mulgan, G, (2010). Measuring Social Value. Stanford Social Innovation Review, 8 (3): 38-43
15. Notta, O. and Vlachvei, A. (2007). Performance of Cooperatives and Investor-Owned Firms: The Case of the Greek Dairy Industry. In K. Karantininis and J. Nilsson, Vertical Markets and Cooperative Hierarchies – the Role of Cooperatives in the Agri-Food Industry. Dordrecht, The Netherlands: Springer Academic Publishers, 277-87.
16. Olson, D. L., Delen, D. and Meng, Y. (2012). Comparative analysis of data mining methods for bankruptcy prediction. Decision Support System, 52 (2), 464-473
17. Pinches, G. E., Mingo, K. A., and Caruthers, J. K. (1973). The Stability of Financial Patterns in Industrial Organizations. Journal of Finance, 389-396.
18. Soboh, R. A. M. E. (2004). The Financial Performance of Some Large Cooperatives in Europe, Comparison and Analysis. Business Economics and Management. Chania- Greece: Un-published, M. Sc Thesis-International Center for Advanced Mediterranean Agronomic Studies.
19. Soboh, R. A. M. E., Lansink, A. O., Giesen, G and Van Dijk, G. (2009). Performance Measurement of the Agricultural Marketing Cooperatives: The Gap between Theory and Practice. Review of Agricultural Economics, 31, 446-469.
20. Soboh, R. A. M. E., Lansink, A. O., and Van Dijk, G. (2011). Distinguishing Dairy Cooperatives From Investor-Owned Firms in Europe Using Financial Indicators. Agribusiness, 27 (1), 34-46.
21. Zainudin, E. F., & Hashim, H. A. (2016). Detecting fraudulent financial reporting
In-Text Citation: (Shamsuddin, Mahmood, Ghazali, Salleh, & Nawi, 2018)
To Cite this Article: Shamsuddin, Z., Mahmood, S., Ghazali, P. L., Salleh, F., & Nawi, F. A. M. (2018). Indicators for Cooperative Performance Measurement. International Journal of Academic Research in Business and Social Sciences, 8(12), 577–585.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
