FINANCIAL PERFORMANCE AND REVENUE GROWTH IN MALAYSIAN CREDIT COOPERATIVES: DO TAX OBLIGATIONS MATTER?
DOI:
https://doi.org/10.18623/rvd.v23.5776Palavras-chave:
Credit Cooperatives, Revenue Growth, Financial Performance, Profitability, Liquidity, Taxation, Panel DataResumo
Credit cooperatives constitute a vital component of Malaysia’s financial ecosystem by promoting financial inclusion and supporting member-based economic activities. Despite their growing economic contribution, sustained revenue growth remains uneven across credit cooperatives, raising questions about the effectiveness of internal financial management and the role of institutional constraints such as taxation. This study investigates the relationship between financial performance and revenue growth in Malaysian credit cooperatives, with particular attention to the moderating role of the tax ratio. Using balanced panel data for 24 credit cooperatives over the period 2018–2024, the analysis employs pooled ordinary least squares, fixed-effects, and random-effects estimations, supplemented by Driscoll–Kraay robust standard errors to address heteroskedasticity, serial correlation, and cross-sectional dependence. The findings indicate that profitability is the most consistent driver of revenue growth, while liquidity exerts a weaker but positive influence. Leverage does not exhibit a stable effect, reflecting the conservative capital structures of cooperatives. Contrary to theoretical expectations, the tax ratio does not significantly moderate the relationship between financial performance and revenue growth, suggesting that Malaysia’s relatively uniform cooperative tax framework dampens fiscal heterogeneity across institutions. These results contribute to cooperative finance literature by highlighting the dominance of internal efficiency over fiscal conditions in shaping revenue outcomes and offer practical implications for cooperative managers and policymakers concerned with long-term financial sustainability.
Referências
Abd Hakim, T., Karia, A. A., & Bujang, I. (2022). Tax structure and economic performance: Evidence from developed and developing countries. Journal of Economic Studies, 49(6), 1085–1104. https://doi.org/10.1108/JES-01-2021-0029
Abor, J., & Biekpe, N. (2007). Small business reliance on bank financing in Ghana. Emerging Markets Finance and Trade, 43(4), 93–102. https://doi.org/10.2753/REE1540-496X430406
Abor, J., Agbloyor, E. K., & Kuipo, R. (2017). Bank finance and SME growth: Evidence from selected African countries. Journal of African Business, 18(2), 216–238. https://doi.org/10.1080/15228916.2017.1301163
AlAli, M. S. (2020). Liquidity management and financial performance of banks: Evidence from Kuwait. Journal of Economics and Finance, 44(3), 445–460. https://doi.org/10.1007/s12197-019-09506-6
Auerbach, A. J., & Gorodnichenko, Y. (2017). Fiscal stimulus and fiscal sustainability. NBER Working Paper Series, No. 23789. https://doi.org/10.3386/w23789
Baltagi, B. H. (2021). Econometric analysis of panel data (6th ed.). Springer. https://doi.org/10.1007/978-3-030-53953-5
Barros, C. P., Peypoch, N., & Williams, J. (2020). Evaluating efficiency in credit unions: A non-parametric approach. Annals of Public and Cooperative Economics, 91(3), 443–465. https://doi.org/10.1111/apce.12261
Bernama. (2024). Cooperative sector turnover exceeds RM64 billion. Bernama News Agency. https://www.bernama.com
Bhalla, P., Kaur, S., & Gupta, R. (2023). Goods and services tax and MSME performance: Evidence from India. International Journal of Social Economics, 50(5), 651–668. https://doi.org/10.1108/IJSE-03-2022-0206
Brigham, E. F., & Houston, J. F. (2022). Fundamentals of financial management (16th ed.). Cengage Learning.
Chen, Y. S., & Hsu, J. C. (2009). The impact of financial ratios on firm performance. Journal of Business Research, 62(8), 790–797. https://doi.org/10.1016/j.jbusres.2008.01.015
Chungyas, M., & Trinidad, F. (2022). Financial performance of credit and multipurpose cooperatives in Northern Philippines. Asia Pacific Journal of Cooperative Studies, 5(2), 45–62.
Cook, W. D., & Seiford, L. M. (2009). Data envelopment analysis (DEA): Thirty years on. European Journal of Operational Research, 192(1), 1–17. https://doi.org/10.1016/j.ejor.2008.01.032
Demirgüç-Kunt, A., & Huizinga, H. (2001). Financial structure and bank profitability. World Bank Economic Review, 15(3), 429–457. https://doi.org/10.1093/wber/15.3.429
Farrell, M. J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society: Series A, 120(3), 253–290. https://doi.org/10.2307/2343100
Gitman, L. J., & Zutter, C. J. (2021). Principles of managerial finance (15th ed.). Pearson Education.
Hakim, T., & Karia, A. A. (2023). Tax revenue composition and economic growth in Asia: A panel data approach. Applied Economics, 55(12), 1398–1416. https://doi.org/10.1080/00036846.2022.2114517
Haq, M., Skully, M., & Pathan, S. (2009). Efficiency of microfinance institutions: A data envelopment analysis. Asia-Pacific Financial Markets, 17(1), 63–97. https://doi.org/10.1007/s10690-009-9103-7
Hendra, R., Santoso, B., & Wijaya, R. (2024). Financial performance and profit growth: Evidence from automotive firms. Journal of Accounting and Investment, 25(1), 112–128. https://doi.org/10.18196/jai.v25i1.19652
Hoechle, D. (2007). Robust standard errors for panel regressions with cross-sectional dependence. Stata Journal, 7(3), 281–312. https://doi.org/10.1177/1536867X0700700301
Hsiao, C. (2014). Analysis of panel data (3rd ed.). Cambridge University Press. https://doi.org/10.1017/CBO9781139839327
Hung, N. T., & Viriany, M. (2023). Financial ratios and profit growth: Evidence from Indonesian manufacturing firms. Asian Journal of Business and Accounting, 16(1), 33–57.
Iannotta, G., Nocera, G., & Sironi, A. (2007). Ownership structure, risk, and performance in the banking industry. Journal of Banking & Finance, 31(7), 2127–2149. https://doi.org/10.1016/j.jbankfin.2006.07.013
Judijanto, L., & Syakhrani, A. W. (2024). Tax burden and profitability of SMEs. International Journal of Economics and Management, 18(1), 55–70.
Koopmans, T. C. (1951). Activity analysis of production and allocation. Wiley.
Mandigma, M. B., & Badoc-Gonzales, B. (2022). Tax incentives and cooperative development: A global review. Journal of Co-operative Studies, 55(2), 17–30.
McKillop, D., French, D., Quinn, B., Sobiech, A. L., & Wilson, J. O. S. (2020). Cooperative financial institutions: A review of the literature. International Review of Financial Analysis, 71, 101520. https://doi.org/10.1016/j.irfa.2020.101520
Nwankwo, F., Phillips, N., Tracey, P., & Kanyangale, M. (2016). Social innovation and social enterprise growth. Journal of Management Studies, 53(5), 772–800. https://doi.org/10.1111/joms.12176
Pandey, I. M. (2020). Financial management (12th ed.). Vikas Publishing House.
Safiyuddin, M., Rahman, A. A., & Hassan, M. K. (2021). Financial performance of Malaysian credit cooperatives. Journal of Co-operative Organization and Management, 9(1), 100130. https://doi.org/10.1016/j.jcom.2021.100130
Safiyuddin, M., Rahman, A. A., & Hassan, M. K. (2022). Cooperative financial sustainability and growth. Annals of Public and Cooperative Economics, 93(4), 995–1020. https://doi.org/10.1111/apce.12359
Stiglitz, J. E., & Rosengard, J. K. (2015). Economics of the public sector (4th ed.). W. W. Norton & Company.
Suruhanjaya Koperasi Malaysia. (2023). Annual cooperative statistics report. SKM.
Syazwani, N., Noor, A. M., & Abdullah, N. (2021). Leverage, profitability, and financial risk in Malaysian cooperatives. Asian Journal of Accounting Research, 6(2), 210–225. https://doi.org/10.1108/AJAR-03-2020-0023
Downloads
Publicado
Como Citar
Edição
Seção
Licença
Submeto (emos) o presente trabalho, texto original e inédito, de minha (nossa) autoria, à avaliação de Veredas do Direito - Revista de Direito, e concordo (amos) que os direitos autorais a ele referentes se tornem propriedade exclusiva da Revista Veredas, sendo vedada qualquer reprodução total ou parcial, em qualquer outra parte ou outro meio de divulgação impresso ou eletrônico, dissociado de Veredas do Direito, sem que a necessária e prévia autorização seja solicitada por escrito e obtida junto ao Editor-gerente. Declaro (amos) ainda que não existe conflito de interesse entre o tema abordado, o (s) autor (es) e empresas, instituições ou indivíduos.
Reconheço (Reconhecemos) ainda que Veredas está licenciada sob uma LICENÇA CREATIVE COMMONS:
Licença Creative Commons Attribution 3.0
