Investigating the Corporate Governance and Financial Performance of Multi-purpose Cooperatives in Lucena City

Corporate Governance is crucial to the success or failure of any corporate organization, especially multipurpose cooperatives. Previous research has revealed that organizations with better corporate governance practices consistently achieve more financial success than those without. The primary purpose of the study is to investigate the corporate governance and financial performance of multi-purpose cooperatives in Lucena City as perceived by their managerial and non-managerial employees and determine if there exists a significant relationship between them. A total of 62 responses were collected both from managerial and non-managerial employees of the multi-purpose cooperatives in Lucena City, selected through purposive sampling. Results reveal that the cooperatives comply with the best practices in the four corporate governance aspects of risk management, transparency/disclosure, accountability, and fairness. Results also showed that the cooperatives are performing financially well. Moreover, it was found that better compliance with corporate governance best practices results in better financial performance. The findings will serve as the basis for the multi-purpose cooperatives for effective corporate governance that will lead the cooperative to financial success.