Cooperative Financial Dynamics: Analyzing The Role of Equity, Loans, And Assets in Driving Sustainable Growth

This study aims to analyze the financial dynamics of cooperatives by emphasizing the role of equity, loans, and assets in driving sustainable growth.This focus is crucial because cooperatives face the challenge of increasing competitiveness while maintaining business sustainability.Cooperative financial data from 38 provinces during the 2021-2023 period is used as the basis for the analysis, with multiple linear regression applied.The independent variables analyzed include equity, loans, and assets, while net operating profit serves as a moderating variable.The results show that equity has a positive and significant effect on cooperative business volume, while loans, assets, and SHU do not have a significant effect, either directly or as moderating variables.Simultaneously, all variables contribute to business volume, while the remaining variables are influenced by factors outside the model.These findings confirm that equity is a key foundation for cooperative growth because it strengthens financial stability, reduces dependence on external loans, and increases member trust.Furthermore, this study emphasizes the need for equity-strengthening strategies through member participation and optimized asset management.The novel contribution of this study lies in its emphasis on asset productivity and the potential integration of green financing as a new instrument to support cooperative sustainability goals, which has been rarely studied in previous literature.