Pecking Order Or Passive Members? Unpacking Capital Structure Determinants In Producer Cooperatives Evidence  From West Java, Indonesia

Sugiyanto Sugiyanto; Warda Raudah; Wahyudin Wahyudin; Fatiya Roja Hasanah

doi:10.32670/jim.v17i2.46

Authors

Sugiyanto Sugiyanto Universitas Koperasi Indonesia
Warda Raudah Kementerian UMKM RI
Wahyudin Wahyudin Universitas Koperasi Indonesia
Fatiya Roja Hasanah Universitas Koperasi Indonesia

DOI:

https://doi.org/10.32670/jim.v17i2.46

Abstract

This study analyzes the effect of business efficiency (ROA), asset structure (fixed asset ratio), member participation as owners, and member participation as users on the capital structure (DER) of primary producer cooperatives in West Java Province, Indonesia, over the 2021–2023 period. The population comprised all active producer cooperatives that reported financial data through the Online Data System (ODS) of the Ministry of Cooperatives. A sample of 50 cooperatives was selected using two-stage purposive sampling. Panel data regression with the Random Effects Model (REM) was employed. Partially, only business efficiency (ROA) had a negative and significant effect on capital structure (coefficient = -4.47; p = 0.003). Asset structure, member participation as owners, and member participation as users were not significant. Simultaneously, all four variables significantly influenced capital structure (F = 3.49; p < 0.01), though they explained only 9% of its variation (adjusted R² = 0.09). This study is the first to simultaneously examine the dual role of cooperative members (owner and user) in influencing capital structure within Indonesian producer cooperatives, integrating Pecking Order Theory, Agency Theory, and cooperative-specific identity principles.

Keywords: Capital Structure, Business Efficiency, Asset Structure, Member Participation, Producer Cooperatives, Panel Data.

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