Financial Stewardship of Cooperatives

Gerry O. Gatawa
Abstract: This paper envisages the concept of financial stewardship by integrating stewardship theory in the finances of cooperatives. It analyzes the relationships between total receivables and gross income, total assets and net surplus, total equity and total assets, number of members and paid-up shares, and paid-up shares and retained earnings. The study used a 7-year panel data of audited financial statements of 657 cooperatives in the seven (7) provinces in one region in the Philippines. A curve estimate was used to interpret the cooperatives’ commitment to stewardship theory as applied in their finances. The result reveals weaknesses in terms of the cooperatives’ commitment to stewardship theory that could bring negative impact on their financial performance. The result brings practical implication which recommends that the cooperative leaders, members and employees must have greater commitment to financial stewardship.
Keywords: Stewardship theory, Financial Stewardship, Cooperatives, Philippines