Transparency and Financial Risks in Nepalese Cooperative Societies

This study offers a thorough assessment of transparency and financial risks in Nepalese cooperative societies, relying on rigorous correlation hypotheses. It reveals a robust association between credit default risk, leverage risk, and liquidity risk with cooperative transparency, validated through null hypothesis rejections. This highlights the critical role of transparency in mitigating financial risks. Conversely, investment risk shows limited correlation with cooperative transparency. Furthermore, an investigation into financial practices unveils a concerning trend in Nepalese cooperative societies, where dividends exceed actual earnings, raising transparency and member deposit concerns. These findings underscore the pressing necessity to enhance transparency in the cooperative sector, a crucial element for maintaining financial integrity and member trust. The research draws insights from 126 cooperative societies located in Kathmandu, providing a comprehensive evaluation of transparency within Nepalese cooperative societies.

Keywords: Transparency, Financial Risks, Cooperative Societies, Financial Practices, Member Deposits.