Factors Affecting Debt Owed of Agricultural Cooperatives to Cooperative Development Fund

Abstract

     This research aimed to identify the factors affecting amount of debt owed of Agricultural Cooperatives (ACs) to Cooperative Development Fund (CDF). To achieve the objective, primary data from 210 of ACs which could not repay loan back to CDF at the end of December 2007 were collected. Moreover, secondary data from related documents were also collected and used in this research. Apart from descriptive statistics such as percentage, mean, maximum and minimum, multiple regression was also applied as analytical tool. Results of the research found that the average age of the studied ACs was 13 years old with average 502 members. The average of total asset was 5.85 million baht in which 1.45 million baht was share capital. These ACs run multiple businesses especially giving loan, buying products from and providing input supply to the members. However, most of these ACs were not successful in their businesses due to their average net profit was -0.36 million baht. The regression analysis showed that the coefficient of determination (R²) was 0.7033 which mean that all independent variables (proportion of share capital to total asset (X₁), net profit (X₂), annual repayment amount (X₃), terms of contract (X₄), interest rate (X₅), and type of collateral (X₆)) could explain 70.33 percent of change in un-repayment amount to CDF (Y). Moreover, the analysis revealed that X₂ and X₆ had significant negative influence while X₃, X₄ and X₅ had significant positive influence on Y.