EFFECT OF LIABILITY MANAGEMENT ON PERFORMANCE OF COOPERATIVE SOCIETIES IN OSUN STATE, NIGERIA 2010-2023

ABSTRACT Cooperative society has been recognized as an important economic role player whose impact has been positively felt in lives of many people in the country as its objective is to promote the economic interests and general welfare of its members which leads to economy growth. However, this role has not been easy as most members of cooperative society on loan do abandon savings when repaying loan which reduce the ordinary saving contributed by members and as well reduce available funds for credit. Some also default in loan repayment which make it difficult for cooperative society to grant loan to qualified member(s) due to insufficient funds. The study therefore, examined the effect of liability management on financial performance of cooperative societies in Osun State, Nigeria. The specific objectives of the study are to examine the effect of liability management measured by share capital, ordinary savings and reserves on financial performance measured by total credit of cooperative societies in Osun State. The study is envisaged to broaden public knowledge on liability management and performance of cooperative societies as well as given required information for policy maker and cooperative societies’ management for better running of cooperative societies in the country. The research adopted causal research design and secondary data method of data collection was used to obtain panel data from Osogbo Oroki Cooperative Investment and Credit Union Limited Statistical Returns of Affiliated Societies from 2010 to 2023. Panel regression analysis was used to analyse the data collected.