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