Cooperative Governance Moderates Liquidity’s Relationship with Credit Risk, Working Capital, and Internal Control

Abstract

This research, which is based on a survey of savings and credit unions and is funded by the Directorate of Cooperatives and Small and Medium Enterprises, aims to identify and assess how credit risk, working capital, and internal control affect liquidity. Secondary data from the Ministry of Cooperatives and Small and Medium Enterprises served as the foundation for this study's data. The quantitative research methodology was employed in this study. The findings of this study demonstrate that internal control, working capital, and credit risk all significantly impact liquidity. Working capital has no impact on liquidity, internal control positively impacts liquidity, and the credit risk variable has a partially negative impact on liquidity. Liquidity is lessened by collaborative governance's reduction of credit risk. Working capital's negative effects on liquidity are reduced by collaborative management. The effect of internal controls on liquidity is not lessened by collaborative management.

Keywords: Credit Risk, Working Capital, Internal Control, Liquidity, Cooperative Governance.

DOI: 10.7176/RJFA/14-16-02

Publication date:August 31^st 2023