Author(s) :

Okere, Akara Udochi .

Volume/Issue :

Abstract :

Abstract This study sought to assess the relationship between capital mobilization among agricultural cooperatives in rivers State and their performance between 2004 to 2018 . The following were the independent variables employed for this study: share capital, savings deposit, thrift savings, external loan debt, loan outstanding, capital assets while the dependent variable performance of cooperative enterprises was proxied by net-worth. The study employed quasi-experimental research design due to its suitability for dealing with multivariate explanatory variable relationship with a singular dependent variable. The nature of the data were secondary data which were sourced from the books of accounts and records of primary cooperative societies within the study area. Six (6) Agricultural cooperative enterprises selected from eight (8) local government area randomly made up the sample that represented the population of the study. Collated data from the 48 agricultural cooperative enterprises was arrange in panel data form and was analyzed using both STATA and E-views 9.0 software. The Im, Pesaran and Shin (IPS) stationary test showed that the variables in the study were stable at first difference. Similarly, the Kao and Pedroni cointegration test confirmed the presence of long run relationship among the variables employed in the study. The models were subjected to Fixed Effect, Random Effect Linear regression and Hausman Test. The findings showed Agricultural cooperatives in Rivers State mobilize capital mainly through share capital, internal loans, capital assets and thrift savings. They performed poorly on special deposits, internal equity capital and external loans.It also revealed that the impact of share capital, thrift savings, outstanding loans and capital assets were positive and significant on the Net-worth (performance) of Agricultural cooperatives in Rivers State while the impact of saving deposit and external loan debt were insignificant, negative and positive respectively. Thus, we can conclude that the impact of share capital, thrift savings and outstanding loans were significant in improving the financial performance of Agricultural cooperatives in Rivers States. On the basis of the empirical findings, the study recommended that the Directors of Cooperatives in Rivers State should provide specialized training and workshop for Agricultural cooperatives to equip them with the knowledge on how to efficiently build up their equity capital consistently. Keywords: Agricultural cooperatives, capital mobilization, networth, performance.

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