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Article Title:
Empirical Analysis of the Performance of AAU Workers/Farmers Multi-Purpose Co-operative Society in Ekpoma, Edo State
by Mamudu Zebedee U. and Prof. OKOSODO, Lawrence A

Abstract:
This paper empirically examined the performance of AAU Workers/Farmers Multi-Purpose Co-operative Society in Ekpoma with the application of the Phillips-Perron test statistics, Johansen Cointegration techniques and the Error Correction mechanismon a multiple regression framework. Annual time series data from 2004 to 2019 on Net Profit after Charges (NPC); Thrift, Savings and Loans interest (TSL); Business Centre/ Hire of Bus (BUS); Trading/Commodities (TCE); Electronics, Inverter and Tobita (EIT); Restaurant (RES); Petrol Station (PSE); Banner Gas(BNG) used in this work were obtained mainly from secondary sources and in particular from AAU Workers/Farmers Multi-Purpose Co-operative Annual Reports and Accounts (various issues). The Phillips-Perron test statistics results showed that all the variables (NPC, TSL, BUS, TCE, EIT, RES, PSE and BNG) were stationary at first difference. In other words, they were found to be stationary at order one I(1), while the Johansen unrestricted cointegration rank test results showed the existence of a long run relationship between NPC, TSL, BUS, TCE, EIT, RES, PSE and BNG, as both Trace and Max-Eigen statistics revealed three cointegrating equations respectively. The empirical results from the short run error correction model showed that the entire explanatory variables in AAU Workers/Farmers Multi-Purpose Co-operative Society met their expected signs except Business Centre/ Hire of Bus (BUS) and Banner Gas (BNG).The results also revealed that Business Centre/ Hire of Bus; Trading/Commodities; Electronics, Inverter and Tobita; Restaurant and Petrol Station have direct and significant impact on Net Profit after Charges on AAU Workers/Farmers Multi-Purpose Co-operative. This means that 1 per cent increase in TSL, TCE, EIT, RES and PSE increases Net Profit after Charges on AAU Workers/Farmers Multi-Purpose Co-operative Society in Ekpoma by 0.649904, 0.353630, 0.586366, 0.313426 and 0.630798 per cent respectively. The error correction mechanism (ECM) results which was -0.795252 was statistically significant and had the appropriate sign. It suggested however, that there was a high adjustment process in the practice of the AAU Workers/Farmers Multi-Purpose Co-operative in Ekpoma, since the speed of adjustment is 79.5 per cent approximately. Finally, the Diagnostic and stability tests confirmed the robustness of the model over time. The study therefore, recommended that the Cooperators should make policies that will attract more Thrift, Savings and Loans into the Cooperative Society to further boost Net Profit after Charges on AAU Workers/Farmers Multi-Purpose Co-operative Society in Ekpoma. Also, the executive committee members of the Cooperative Society should encourage members to increase their savings with the Cooperative society regularly. This will significantly influence the performance of Business Centre/Hire of Bus and trading of commodities in the Cooperative Society.

Keywords: Cooperative, Cooperator, Investment, Thrift, Savings and Loans

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