CREDIT RISK AND PERFORMANCE EVALUATION OF COOPERATIVES IN REGION XI USING DATA ENVELOPMENT ANALYSES (DEA)
Abstract
This paper illustrated the methodology that indicates how the Standard and Negative Data Envelopment Analysis (DEA) techniques can be applied to predict likely failures in cooperatives. The general objective of this study is to develop a model that will provide a reasonably accurate means of evaluating the creditworthiness of cooperatives in Region 11 using information obtained from the Financial Statement submitted to the Cooperative Development Authority. The results showed that the Standard DEA could predict cooperatives that are likely to fail in combination with the Negative DEA. The proposed methodologies identify companies with a high risk of going bankrupt by looking at their total financial situation.
JEL: E51; L10; L20
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DOI: http://dx.doi.org/10.46827/ejefr.v6i1.1268
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