Determinant Financing Risk
Study on Sharia Cooperative incorporated in Inkopsyah
Oyong Lisa
1
and Bambang Hermanto
2
1
Universitas Gajayana Malang,
2
Politehnik LP3I Jakarta
Keywords: Cooperative Size, Financing Risk, Leverage, Net Profit Margin, Number of Members.
Abstract: Financing plays an important role for cooperatives in channelling funds to the public or companies,
conducted through a process of financing feasibility analysis to the realization of funds disbursement. This
study aims to analyse the effect of the cooperative measure, net profit margin, leverage, and a number of
members simultaneously to financing risk, and to analyse the effect of cooperative measure, net profit
margin, leverage and partial member amount to financing risk. This research is included in the type of
explanatory research. The number of samples in this study is 74 Sharia Cooperatives. The analysis
technique used multiple regression analysis. The results showed that the size of cooperatives, net profit
margin, leverage and the number of members simultaneously to financing risk. The size of cooperatives, net
profit margin, leverage and the number of members partially to financing risk. In order to save Sharia
cooperatives from financing risk and help customers to complete their obligations, sharia cooperatives can
restructure through rescheduling, reconditioning restructuring. If the three restructuring efforts are
unsuccessful, the sharia cooperative can settle the financing risk through confiscation of goods and
settlement through litigation.
1 INTRODUCTION
Sharia cooperative which is a financial institution
that serves as an intermediary between the excess
funds with the party who lack funds in practice
every year also experienced problem loans.
Financing plays an important role for cooperatives in
channeling funds to the public or companies,
conducted through a process of financing feasibility
analysis to the realization of funds disbursement.
Financing is one of the main sources of revenue for
Islamic Cooperatives (Lisa, 2016). Realization of
financing is not the last stage of the financing
process. After the realization of financing, Sharia
cooperative officials need to monitor and supervise
the financing. The involvement of Sharia co-
operatives in monitoring and supervision of
financing is a necessity, in order to save the public
funds that have been mandated to Sharia
cooperatives.
Problem financing is a financing channeled to
customers but customers cannot make payments or
installments in accordance with agreements that
have been signed in other words the customer has
defaulted. The more customers classified as
wanprestasi causing losses in sharia cooperatives is
the loss due to non-receipt of funds already provided
to customers and the profit sharing that should be
received.
One of the predicted factors affecting financing
risk is the size of the cooperative. In cooperatives,
the size is more likely to be seen from total assets
considering the main products are financing and
investment. Cooperatives with large assets have the
potential to generate greater profits when followed
by the results of their activities. In addition, net
profit margin (NPM) can also affect financing risk,
the higher the value of NPM indicates that the
cooperative sharia more efficient operational. Sharia
cooperatives can suppress unnecessary costs, so
sharia cooperatives are able to maximize net profit
earned and cooperatives will grow faster into
cooperatives with greater equity. The number of
members is one of the factors causing the
Company's Operating Income to increase. In a
cooperative, membership has characteristics that
distinguish it from other business entities. Members
can participate by performing other financial
activities of getting a loan.
276
Lisa, O. and Hermanto, B.
Determinant Financing Risk - Study on Sharia Cooperative incorporated in Inkopsyah.
In Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study (JCAE 2018) - Contemporary Accounting Studies in
Indonesia, pages 276-286
ISBN: 978-989-758-339-1
Copyright © 2018 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved

This study aims to analyze the effect of
cooperative size, net profit margin, leverage and
number of members simultaneously to financing
risk, and to analyze the effect of cooperative
measure, net profit margin, leverage and partial
amount of members to financing risk.
2 LITERATURE REVIEW
2.1 Cooperative Size
The greater the assets or assets owned to increase the
volume of financing that can be channeled by the
sharia cooperative, which means the total financing
provided. The greater the total financing will cause
the smaller the ratio of NPF generated, so the
relationship Size ratio with NPF ratio is the greater
Size Ratio will cause the smaller NPF ratio (Taswan,
2010).
Dendawijaya (2009) argues, the greater the
volume of financing provides an opportunity for the
cooperative to suppress the spread rate, which in
turn will reduce the lending rate of customers who
need financing. Low-interest rates can spur
investment and boost economic sectors. Low-
interest rates also facilitate payment of financing,
thus reducing the number of financial congestion.
The ratio of the size of the cooperative is derived
from the total assets owned by the cooperative
concerned when compared to the total assets of other
cooperatives.
According to Sawir (2004: 101-102) firm size is
expressed as the determinant of the financial
structure in almost every study for different reasons:
1) firm size can determine the level of ease of the
company obtaining funds from the capital market.
Small firms generally lack access to organized
capital markets, both for bonds and stocks. Although
they have access, the cost of launching from the sale
of a few securities may be an obstacle. If securities
issuance can be done, the securities of a small
company may be less marketable and thus require
pricing in such a way that the investor gets a result
that gives a significantly higher return. 2) Firm size
determines the bargaining power of the financial
contract. Large corporations can usually choose to
fund from various forms of debt, including special
offers that are more profitable than those offered by
small companies. The greater the amount of money
used, the more likely it is to make contracts designed
according to the preferences of both parties instead
of using standard debt contracts. 3) There is the
possibility of a scale effect in cost and return making
larger firms earn more profit. Ultimately, company
size is followed by other characteristics that affect
the financial structure. Other characteristics such as
companies often do not have special staff, do not use
financial plans, and do not develop their accounting
system into a management system.
The main factors affecting the size of the
cooperative: (1) The number of total assets, (2) The
number of sales, (3) The amount of market
capitalization. Larger cooperatives have greater
access to sources of funding from multiple sources
so as to obtain loans from creditors will be easier
because large-size cooperatives have greater
profitability to win the competition or survive. The
larger the size of a cooperative, the tendency to use
foreign capital is also greater. This is because large
cooperatives require substantial funds to support
their operations, and one alternative fulfillment is
with foreign capital if the capital itself is not
sufficient (Halim, 2007: 42). The definite criteria on
the size of a cooperative in the theory of critical
resources used the formula:
Cooperative Size = Ln (Total Asset) (1)
2.2 Net Profit Margin (NPM)
According to Bastian and Suhardjono (2006: 299),
Net Profit Margin is the ratio of net income and
sales. The greater the NPM, the company's
performance will be more productive, so that will
increase investor confidence to invest in the
company. This ratio shows how much percentage of
net profit earned from each sale. The greater this
ratio, the better the company's ability to earn a high
profit. The relationship between tax net income and
net sales shows the ability of management to drive a
company successful enough to leave a certain
margin as reasonable compensation for owners who
have provided capital for a risk. The results of the
calculations reflect net profit per rupiah of sales. The
capital market investors need to know the company's
ability to generate profits. By knowing this the
investor can assess whether the company is
profitable or not. According to Sulistyono in Rinati
(2008: 5), NPM figures can be said well if more than
5%. Sawir (2004: 18) net profit margin (Net Profit
Margin or Profit Margin on Sales) is formulated
with net income divided by sales, this ratio measures
net income after tax on sales. Syamsudin (2007: 62)
suggests Net Profit Margin (NPM) is the ratio
between net profit net profits is reduced sales with
all expenses including taxes compared to sales. Net
Determinant Financing Risk - Study on Sharia Cooperative incorporated in Inkopsyah
277

Profit Margin (NPM) is a ratio that shows how well
the company has operated during the year. NPM is
used to describe the level of profit earned by sharia
cooperatives compared to income received from its
operational activities.
From some sense above can be concluded that
Net Profit Margin (NPM) is a comparison between
net incomes with sales to generate profit net profit
after tax. The greater the NPM, the company's
performance will be more productive so that it will
increase investor confidence to invest in the
company. The capital market investors need to know
the company's ability to generate profits. By
knowing this the investor can assess whether the
company is profitable or not. The formula for
calculating Net Profit Margin (NPM) according to
Fahmi (2013: 82) i.e.
Net Profit Margin =
Sales
after tax Earning
(2)
NPM is a measure of profitability related to the
generated sales, net income of sales dollars (Horne
and Wachowicz, 2005). Net profit margin is a
measure of profit by comparing earnings after
interest and taxes compared to sales. This ratio
shows the company's net income on sales (Cashmere
2012: 200). Net profit margin or net profit margin is
a sales gain after calculating all costs and income
taxes. This margin shows the ratio of net income
after tax to sales (Harjito and Martono 2011: 60).
2.3 Leverage
The leverage ratio gives the size of the funds
provided by the owner of the company compared to
the funds obtained from the company's creditors.
This ratio shows the company's ability to meet its
long-term obligations. Leverage ratio can also be
interpreted as the number of assets of companies that
get capital by using funds from outside parties. With
the use of external funds, this will increase the risk
of return (risk of return) for shareholders, due to a
fixed burden of interest payments on the loan.
The leverage ratio is a ratio that measures how
much a company is financed with debt. According to
Harahap (2013: 106), leverage is a ratio that
describes the relationship between corporate debt to
capital, this ratio can see how far the company
financed by debt or outsiders with the capability of
the company described by capital. The leverage ratio
is to measure how much the company financed by
debt (Fahmi, 2013: 127). The leverage of this
research is measured by Debt to Equity Ratio
(DER). This ratio is used to compare sources of
capital derived from debt (long-term debt and short-
term debt) with own capital. This is usually used to
measure the financial leverage of a company.
According to Sartono (2010: 121), the mathematical
calculation of Debt to Equity Ratio (DER) is:
DER =
Equity Total
Debt Total
(3)
According to Kasmir (2010: 153-154) the
purpose of the company by using the ratio of debt
(leverage) namely: to know the position of the
company against liabilities to other parties
(creditors); to assess the company's ability to meet
fixed obligations (such as loan installments
including interest); to assess the balance between the
value of assets, especially fixed assets with capital;
to assess how much the company's assets are
financed by debt; to assess how big the effect of
corporate debt on asset management; to assess or
measure how much of each of the rupiah own capital
is used as a guarantee of long-term debt; to assess
how much loan funds are immediately to be billed,
there are so many times own capital owned.
2.4 Number of Members
Cooperative members are persons who register and
pay principal savings, mandatory savings, as well as
other provisions in a cooperative and, have the right
to obtain the rest of the business proceeds from
activities undertaken by a cooperative. The progress
of a cooperative is strongly influenced by many
members of the cooperative. In accordance with the
Law No.17 of 2012 on cooperative article 26
paragraph 1, that: members of the cooperative are
the owner and simultaneous users of cooperative
services. So the cooperative is not owned by
individuals, but owned by all members of the
cooperative and the market of the cooperative is its
own members who do not serve outside members.
So the cooperative is a business entity formed to
meet the needs of its members, for the sake of
prosperity and prosperity together, unlike other
business entities that serve the public in general.
2.5 Financing Risk
Silvanita (2009) defines financing risk as the risk of
possible non-repayment of loans in accordance with
contracts, such as delays, reduction of interest
payments and/or loan principal, or not paying the
loan at all. Furthermore, according to Muhammad
JCAE Symposium 2018 – Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study
278

(2005), the risk of financing arises if the Sharia
cooperative cannot recover the principal installment
or interest from the loan it provides or the
investment it is doing. The main cause of the risk of
financing is that it is too easy for sharia cooperatives
to lend or invest because it is too demanding to take
advantage of excess liquidity so that the financing
scheme is less accurate in anticipating the various
possible business risks it finances. This risk can be
suppressed by giving the authority of cost decision
for each financing officer, by authorizing limit and
financing of credit line limit, and diversification
(Muhammad, 2005). As an indicator showing the
loss due to financing risk is reflected in the amount
of Non Performing Financing (NPF). Non
Performing Financing (NPF) is a bad financing of
uncollectible financing. The magnitude of the NPF
reflects the level of cost control and financing
policies undertaken by sharia cooperatives.
According to Veithzal (2010), non-
performing financing means that financing in its
implementation has not reached or fulfilled the
desired target of sharia co-operatives such as return
of principal or profit sharing; financing that has the
possibility of future risks for sharia cooperatives,
including doubtful financing and traffic jams and the
current class that could potentially occur in arrears
in return. To minimize the NPF level it is necessary
to perform financing analysis. Based on the existing
financing analysis, it is expected that sharia
cooperatives can reduce the risk of problem
financing and be more careful in channeling the
financing.
NPF =
Financing Total
Financing Problem
x 100% (4)
2.6 Hypothesis
H
1
: Cooperative size, NPM, leverage, and
number of members simultaneously affect the
financing risk
H
2
: Cooperative size affects financing risk
H
3
: NPM has an effect on financing risk
H
4
: Leverage affects financing risk
H
5
: The number of members affected the
financing risk
3 RESEARCH METHODS
3.1 Types of Research
This research is an explanatory research. According
to Ghozali (2012) explanatory research or
explanatory research that explains the causal
relationship with the intent to test the hypothesis
about the influence of one variable or multiple
variables (independent variables against other
variables / dependent variables).
3.2 Operational Definition of Variables
Operationalization and measurement of all variables
in this study are as follows:
1) Cooperative Size
The size of the cooperative is the cooperative
scale seen from the total assets of the cooperative
at the end of the year, which is measured using
the following formula:
Cooperative size = Ln (Total Asset) (5)
2) Net Profit Margin
Net profit margin is the ratio used to show the
ability of the cooperative in generating net profit,
as measured by using the formula as follows:
Net Profit Margin =
Sales
after tax Earning
(6)
3) Leverage
Leverage is the use of assets and sources of co-
operative funds that have a fixed cost with the
intention to increase profits, as measured by
using the following formula:
DER =
Equity Total
Debt Total
(7)
4) Number of Members
The number of members represents the number
of members of each sharia cooperative in
Indonesia within the period 2014 - 2016 as
measured by the units of people.
5) Financing risk
Financing risk is a condition in which the
customer fails to make the payment according to
the agreement, which are proxies with the ratio
of NPF used to measure the bank's management
capability in managing the non-performing loans
provided by the bank to total credit owned.
Determinant Financing Risk - Study on Sharia Cooperative incorporated in Inkopsyah
279

3.3 Population and Sample
The population used in this study is all Sharia
Cooperatives incorporated in Inkopsyah that is as
many as 421 cooperatives. The sampling method
used is purposive sampling method, where the
population that will be used as research sample is the
population that meets the criteria of a particular
sample. The criteria are as follows:
1. Sharia Cooperatives incorporated in Inkopsyah
in a row for the period 2014 - 2016.
2. The Sharia Cooperative has issued its annual
report for the period 2014 - 2016 respectively
Based on the criteria, the number of samples in this
study is 74 Sharia Cooperatives, for 3 years from
2014 until 2016, with combined model data obtained
as much as 222.
3.4 Data Analysis Method
The analysis used in this research is descriptive
analysis and multiple linear regression analysis. The
regression equation used is as follows:
Y = a + b
1
X
1
+ b
2
X
2
+ b
3
X
3
+ b
4
X
4
+ e (8)
Information:
Y = Financing risk
a = constant number
b
1..
b
4
= regression coefficient
X
1
= Cooperative Size
X
2
= NPM
X
3
= leverage
X
4
= number of members
e = error term
The use of regression analysis as an analytical model
must satisfy classical assumptions consisting of
normality, multicollinearity, heteroscedasticity, and
autocorrelation. The classical assumption (the basic
assumption) in the regression model is needed to
produce an unbiased estimator, fulfill the basic
assumption then the coefficient appraisal obtained is
not biased, on the other hand, if the unmet basic
assumption leads to the coefficient estimate being
biased which can lead to misinterpretation and
conclusion
4 RESULTS AND DISCUSSION
4.1 Statistics Description
Descriptive statistical results explain the minimum
value, maximum value, mean value and deviation
value of all variables used in the study.
Table 1. Statistics Description
N
Mini
mum
Maximu
m Mean
Std.
Deviation
Size 222 18,49 26,59 22,5984 1,27324
NPM 222 0,07 11,39 2,8868 2,39060
Leverage 222 0,04 33,32 8,6610 5,78887
Number of
Member
222 8,00
93346,0
0
7709,932
4
1267,26451
Financing
Risk
222 0,01 4,89 1,2888 1,16001
Source: Data processed, 2017.
Based on the data presented in Table 1 shows
that the size of the cooperative ranges from 18.49 to
26.59 this shows the variation of cooperative Sharia
cooperatives varied. The average size of the
cooperative is 22.5984 with the standard deviation
of 1.27324 which is smaller than the average value,
thus it can be said that the data deviation on the size
of the cooperative is good. NPM ranges from 0.07 to
11.39 This shows varied NPM Sharia co-operatives.
The average NPM of 2.8868 with a standard
deviation of 2.39060 is smaller when compared to
the average value, thus can be said that the data in
the NPM has been good data. This shows that Sharia
Cooperative is categorized as able to generate profit.
Leverage ranges from 0.04 to 33.32 this indicates
variations in the leverage of varied Sharia
Cooperatives. The average leverage of 8.6610 with
the standard deviation of 5.78887 is smaller when
compared to the average value, thus it can be said
that the data deviation on the leverage is good. The
number of members ranging from 8 to 93346
indicates variations in the number of members of
Sharia cooperatives are varied. The average number
of members of 7709 with a standard deviation of
1267 is smaller when compared to the average value,
thus it can be said that the data deviation on the
JCAE Symposium 2018 – Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study
280

number of members is good. The financing risk
ranges from 0.01 to 4.89, indicating variations in the
financing of various sharia cooperative ratios. The
average financing risk of 1.2888 with a standard
deviation of 1.16001 is smaller than the average
value, thus it can be said that the data in the
financing risk is good.
4.2 Classic Assumption
4.2.1 Normality Test
One of the important assumptions in regression
testing is that the data is normally distributed.
Testing of data normality by a graphical method in
which data spreads around the diagonal line and its
direction follows the direction of the diagonal line,
meaning the assumption of data normality is met.
Normality test results are presented in Figure 1.
Observed Cum Prob
1.00.80.60.40.20.0
Expected Cum Prob
1.0
0.8
0.6
0.4
0.2
0.0
Normal P-P Plot of Regression Standardized Residual
Dependent Variable: Financing Risk
Figure 1. Normality Test
Based on Figure 1 shows that the data spread
around the diagonal line and its distribution follows
the direction of the diagonal line, so it can be said
that the data is normally distributed.
4.2.2 Multicollinearity Test
A regression model is free from multicollinearity if
the VIF (Variance Inflation Factors) value of each
independent variable is less than 5 and the tolerance
value is close to 1. The VIF results are presented in
the following table:
Table 2: Multicollinearity Test Results
Coefficients
a
,536 1,865
,810 1,235
,813 1,230
,604 1,656
Size
NPM
Leverage
Number of Member
Model
1
Tolerance VIF
Collinearity Statistics
Dependent Variable: Financing Risk
a.
Source: Data processed, 2017.
Based on the results of the VIF calculation shows
that all variables have a VIF value <5, so it can be
concluded that the regression model there is no
multicollinearity problem.
4.2.3 Heteroscedasticity Test
Heteroscedasticity means the presence of unequal
residual variation for all observations, or the
presence of increasing residual variation in larger
numbers of observations. Tests of heteroscedasticity
symptoms using scatterplot, heteroscedasticity test
results are presented in the following figure.
Regression Standardized Predicted Value
6420-2-4
Regression Studentized Residual
4
2
0
-2
-4
-6
Scatterplot
Dependent Variable: Financing Risk
Figure 2. Heteroscedasticity Test
Based on the picture above, the spots appear to
be randomly distributed, not forming a certain
pattern that is clear, and scattered, either above or
below the number 0 on the Y-axis. This means there
is no heteroscedasticity in the regression model.
4.2.4 Autocorrelation Test
To determine whether there are autocorrelation
symptoms in the regression analysis model used is
Determinant Financing Risk - Study on Sharia Cooperative incorporated in Inkopsyah
281

by testing the serial correlation model with Durbin-
Watson (DW) method. Conventionally it can be said
that a regression equation is said to have satisfied the
assumption of no autocorrelation if the value of the
Durbin-Watson test is between the dU and (4-dU)
values obtained from the Durbin Watson table.
Based on the calculation it can be seen that the value
of Durbin-Watson test is 1.916, so it is bigger 1.76
(dU) and smaller than 2.24 (4-dU). It can be
concluded that there is no autocorrelation in the
regression model.
4.3 Multiple Regression Analysis
Analysis of this data using multiple regression
analysis to find out how big the effect of cooperative
size variables, NPM, leverages and the number of
members to financing risk. Based on the output of
SPSS (Statistical Product and Service Solutions)
version 15 for windows, where summary data
analysis results are presented in table 3 below.
Table 3. Summary of Results of Multiple Regression
Analysis
Variable
Regression
Coefficient
t
P
value
Size 0,196 3,563 0,000
NPM -0,061 -2,536 0,012
Leverage 0,027 2,769 0,006
Number of
Member
0,00004 8,564 0,000
Constanta
R
Adjusted R square
F
Prob.
= -3,551
= 0,758
= 0,567
= 73,394
= 0,000
F
table (
α
=0,05)
T
table (
α
=0,05)
= 2,41
= 1,960
Dependent variable = Financing risk (Y)
Source: Data processed 2017.
The results of multiple regression analysis as
presented in the table above can be arranged in the
regression equation as follows:
Y = -3,551 + 0,196X
1
- 0,061X
2
+ 0,027X
3
+
0,00004X
4
Based on the results of the equation, it can be
explained as follows:
1) Constants (a) = -3.551, indicating the amount of
financing risk if there is no cooperative measure
variable, NPM, leverage, and a number of
members, then the financing risk is -3.551.
2) The coefficient of regression of cooperative size
equal to 0,196, indicating the size of
cooperative size effect to financing risk,
positive regression coefficient indicate
cooperative size influence toward financing
risk, which mean every increase of 1 unit of
cooperative size causes increase of financing
risk equal to 0,196%; and vice versa assuming
the NPM variable, leverage and number of
members of magnitude are constant.
3) The NPM regression coefficient of -0.061
indicates the magnitude of NPM's influence on
financing risk, negative regression coefficient
indicates that NPM has an adverse effect on
financing risk, which means that every 1%
increase in NPM causes a decrease in financing
risk by 0.061%; and vice versa assuming
cooperative size, leverage and number of
member variable are constant.
4) Leverage regression coefficient of 0.027,
indicating the influence of leverage to financing
risk, positive regression coefficient indicates
leverage influence on the financing risk, which
means that every 1% increase leverage causes
an increase of financing risk by 0,027%; and
vice versa assuming cooperative measure
variable, NPM and number of member of
magnitude constant.
5) The regression coefficient of the number of
members is 0.00004, indicating the influence of
the number of members to the financing risk,
the positive regression coefficient indicates the
number of members influential in the direction
of the financing risk, which means that each 1%
increase in the number leads to an increase in
financing risk by 0.0004%; and vice versa
assuming cooperative size, NPM and leverage
variables are constant.
The correlation coefficient (R) of 0.758;
shows that there is a strong relationship between the
size of the cooperative, NPM, leverage and the
number of members with a financing risk of 75.8%.
Results of multiple linear regression analysis above
can be seen the value of a coefficient of
determination (adjusted R square) of 0.567. This
figure indicates that cooperative measure variable,
NPM, leverage and number of member can explain
variation or able to contribute to financing risk
JCAE Symposium 2018 – Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study
282

variable equal to 56,7%, while the rest equal to
43,3% caused by other variable not included in
research.
Based on table 3, it can be described as follows:
Figure 3: Effect of Cooperative Size, NPM, Leverage
and Number of Members against Financing Risk
4.4 Hypothesis Testing
4.4.1 Hypothesis Testing 1
To test the first hypothesis which states that the size
of the cooperative, NPM, leverage and number of
members simultaneously affect the financing risk,
using the F test. Based on F test results obtained
F
count
= 73.394 while F
table
2.41, so F
count
> F
table
,
while the probability value of 0.000 is smaller than α
= 0.05 (0.000 <0.05), so the size of cooperative,
NPM, leverage and number of members
simultaneously have a significant effect on financing
risk. Thus the first hypothesis is statistically tested or
accepted.
4.4.2 Hypothesis Testing 2
To test the second hypothesis that the size of the
cooperative to financing risk, using t test. The result
of analysis obtained t
count
= 3.563 while at 95%
confidence level (α = 0.05) obtained t
table
value =
1.960 so t
count
> t
table
(3.563> 1.960) or probability
0.000 smaller than α = 0.05 (0.000 <0.05), so H0 is
rejected or Ha accepted which means that the size of
the cooperative has a significant effect on financing
risk. Thus the second hypothesis is statistically
tested.
4.4.3 Hypothesis Testing 3
To test the third hypothesis which states that NPM to
financing risk, using t test. The result of analysis
obtained t
count
= -2.536 whereas at 95% confidence
level (α = 0.05) obtained t
table
value = -1.960 so t
count
<-t
table
(-2.536 <-1.960) or probability value 0.012
smaller than α = 0.05 (0.012 <0.05), so H0 is
rejected or Ha accepted which means that NPM has
a significant effect on financing risk. Thus the third
hypothesis is statistically tested.
4.4.4 Hypothesis Testing 4
To test the fourth hypothesis which states that
leverage to financing risk, using t test. The result of
analysis obtained t
count
= 2.769 while at 95%
confidence level (α = 0.05) obtained t
table
value =
1.960 so t
count
> t
table
(2.769> 1.960) or probability
value 0.006 less than α = 0.05 (0.006 <0.05), so H0
is rejected or Ha accepted which means that leverage
has significant effect to financing risk. Thus the
fourth hypothesis is statistically tested.
4.4.5 Hypothesis Testing 5
To test the fifth hypothesis which states that the
number of members to financing risk, using t test.
The result of analysis obtained t
count
= 8.564 while at
95% confidence level (α = 0.05) obtained t
table
value
= 1.960 so t
count
> t
table
(8.564> 1.960) or probability
0.000 smaller than α = 0.05 (0,000 <0.05), so H0 is
rejected or Ha accepted which means that the
number of member significantly influences to
financing risk. Thus the fifth hypothesis is
statistically tested.
4.5 Discussion
4.5.1 Effect of Cooperative Size on
Financing Risk
Cooperative measures affect financing risk; it shows
that cooperatives with large assets can generate
greater profits when followed by the results of
operational activities. One of the operational
activities of the cooperative is financing. If the assets
or assets owned by sharia cooperatives increase,
then the financing disbursed will increase and
financing risk will increase. These results reinforce
the results of research Purnasiwi and Sudarno (2011)
which also states the size has a positive effect on the
NPL. As the opinion of Sastradiputra (2004), the
side of the asset of sharia cooperatives shows
management strategies and activities related to fund-
Size
NPM
Leverage
Number of
Member
b
1
= 0,196
p = 0,000
b
2
= -0,061
p = 0,012
b
3
= 0,027
p = 0,006
b
4
= 0,00004
p = 0,000
F = 73,394
p = 0,000
Financing
Risk
Determinant Financing Risk - Study on Sharia Cooperative incorporated in Inkopsyah
283

raising which include cash, accounts in Sharia
cooperatives, short-term and long-term loans, and
fixed assets. The greater the assets or assets owned
by Sharia cooperatives indicates the greater the
wealth of sharia cooperatives. The greater the wealth
of sharia cooperatives, the sharia cooperative is able
to cover the losses due to troubled financing (NPF).
Furthermore, Siamat (2005) states that one of the
causes of the NPF increase is the irregularities in the
implementation of financing procedures. In addition,
the possibility of increased non-performing
financing is due to a debtor or other macroeconomic
factors other than the ratio of assets owned by the
cooperative concerned. The results of this study
support Diyanti (2012) that size has a negative effect
on Non-performing Loan (NPL), this is in line with
Astrini et al. (2014) which states that size affects
NPLs in banking financial institutions that go listed
on the Indonesia Stock Exchange.
4.5.2 The Effect of Net Profit Margin on
Financing Risk
Net profit margin has a significant effect on
financing risk, it shows that if the ratio of NPM of
sharia cooperative is big, it shows that sharia
cooperative is performing well, because it can
generate big net profit through its income activity, so
it can decrease financing risk. The bigger ratio net
profit margin is better because it is considered the
ability of cooperatives in getting a high enough
profit (Kasmir, 2012). Sharia cooperatives function
as an intermediary institution, which is functioned to
collect funds from the community and channel the
funds back to the community who need it in the
form of financing. On the assets side of sharia
cooperative balance of the largest operating fund of
each sharia cooperative is channeled in the form of
financing. This fact illustrates that financing is the
largest source of Syariah cooperative revenue, but at
the same time it is the biggest source of risk of
business operations. Non-performing financing
becomes a problem for the sharia cooperative,
because with the problem financing not only
decreases the income for sharia cooperatives but also
undermines the operational funds and financial
liquidity of sharia cooperatives, which will
eventually destabilize the sharia cooperative's health
and will ultimately, hurt the customers. This is
because most of the funds used by sharia
cooperatives in channeling funds in the form of
funds are the depositors 'funds so that the depositors'
funds are required to get legal protection. Therefore,
risk management is required to identify, measure,
monitor, and control risk in accordance with Sharia
cooperative business activities. The steps taken by
the sharia cooperative in order to mitigate the risk
should consider conformity with the Sharia
Principles. The results of this study support
Permanasari and Suhardjanto (2014) which states
that net profit margin effect on credit risk.
4.5.3 Effect of Leverage on Financing Risk
Leverage affects the financing risk, which means
that the greater the Sharia cooperative debt, the
greater the risk faced by sharia cooperatives. This
study is in line with Hanafi and Halim (2007) which
revealed that companies that have high leverage
credit risk will be greater and vice versa if leverage
in the company is low then credit risk will also be
smaller. Horne (2005) states that the higher the
leverage, the greater the financial risk. Financing is
one function of sharia cooperatives, by channeling
funds to meet the lack of funds (deficit units) which
one of the goals is to support planned investments.
Of course, in channeling the financing funds need an
appropriate procedure, so that all the risks
experienced will be reduced or no. The importance
of the procedural distribution of financing is
intended to reduce any risks faced in the distribution
of financing to the debtor. The results of this study
support Permanasari and Suhardjanto (2014) which
states that leverage affects credit risk.
4.5.4 The Effect of Number of Members on
Financing Risk
The number of members affected the financing risk;
it shows that the number of members is one factor
that causes the rest of the business results to
increase, but not always increase the number of
members can cause the rest of the business results is
always increasing. Increasing the number of
members can increase the rest of the business
results, if the new member has an active role in
Sharia cooperative, in the sense that the new
member can access all the programs that have been
established by the cooperative, such as diligent
saving so as to increase cooperative capital, actively
borrow or cooperative, and orderly installments, and
vice versa if unmanaged members pay it impact on
increasing financing risk. The more the number of
cooperative members reflects the more increasing
public trust towards cooperatives as economic
institutions. Members of cooperatives have an
important role in advancing cooperatives, in the
absence of members of cooperatives cannot walk.
Members are voters and users of cooperative
JCAE Symposium 2018 – Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study
284

services. Each cooperative is established in order to
increase the number of its members, by providing an
opportunity for the community to register as a
member. The more developed a cooperative, usually
the more the number of members. As Baswir (2000)
argued that Cooperatives would not be possible
without members as the backbone of their business.
5. CONCLUSION
Based on the results of the analysis shows that the
size of cooperatives, NPM, leverage, and a number
of members simultaneously affect the financing risk.
The size of cooperatives, NPM, leverage, and a
number of members partially affect the financing
risk. This shows that cooperatives with large assets
can generate greater profits when followed by the
results of its operational activities. One of the bank's
operational activities is channeling the financing. If
the assets or assets owned by the cooperative is
greater than the financing disbursed will increase
and the condition of financing risk will increase. The
greater the NPM, it shows that the Sharia
cooperative is performing well, because it can
generate a large net income through its income
activity, thereby reducing the financing risk,
accompanied by members active in sharia
cooperatives, such as diligent saving, active
borrowing and orderly installment, and on the other
hand, if the members are not orderly paying the
impact of increasing the financing risk. In order to
save Sharia cooperatives from financing risk and
assist customers in order to settle their obligations,
sharia banks can restructure through rescheduling;
reconditioning (return requirements); restructuring.
However, if the three restructuring efforts are
unsuccessful, then sharia cooperatives can settle the
financing risk through confiscation of collateral
goods, national Sharia arbitration body, and
settlement through litigation
REFERENCES
Agus Harjito dan Martono. 2011. Manajemen Keuangan.
Edisi Kedua, Cetakan. Pertama, Penerbit EKONISIA,
Yogyakarta.
Astrini, Km. Suli, I Wayan Suwendra, dan I Ketut
Suwarna. 2014. Pengaruh CAR, LDR, dan Bank Size
Terhadap NPL Pada Lembaga Perbankan Yang
Terdaftar Di Bursa Efek Indonesia.
e-Journal Bisma
Universitas Pendidikan Ganesha
. Volume 2: 1-8.
Bastian, Idra dan Suhardjono, 2006.
Akuntansi Perbankan,
Buku Dua, Edisi Pertama, Salemba Empat, Jakarta.
Baswir, Revrisond. 2000.
Akuntansi Pemerintahan
Indonesia
. BPFE, Yogyakarta
Dendawijaya, Lukman. 2009.
Manajemen Perbankan.
Ghalia Indonesia, Jakarta.
Diyanti, Anin. 2012. Analisis Pengaruh Faktor Internal
dan Eksternal Terhadap Terjadinya Non Performing
Loan (Studi Kasus Pada Bank Umum Komersial Yang
Menyediakan Layanan Kredit Pemilikan Rumah
Periode 2008-2011). Diponegoro
Journal of
Management
Vol.1 Nomor 2: 290-299. Universitas
Diponegoro, Semarang.
Fahmi, Irham. 2012.
Pengantar Pasar Modal. Bandung:
Alfabeta.
Ghozali, Imam. 2012.
Aplikasi Analisis Multivariate
dengan Program IBM SPSS. 20.
Semarang: Badan
Penerbit – Universitas Diponegoro.
Halim, A. 2007.
Akuntansi Keuangan Daerah. Edisi
Ketiga. Salemba. Jakarta.
Hanafi, Mamduh M dan Abdul Halim. 2007.
Analisis
Laporan Keuangan
. Edisi Ketiga, Yogyakarta : STIE
YKPN.
Harahap, S., S. 2013.
Analisis Kritis Atas Laporan
Keuangan
. Edisi Sebelas. Rajawali Pers. Jakarta.
Horne dan Wachowicz. 2005.
Prinsip – prinsip
Manajemen
. Jakarta: Salemba Empat.
Kasmir. 2010.
Pengantar Manajemen Keuangan. Kencana
Prenada Media Group. Jakarta.
______. 2012.
Analisis Laporan Keuangan. Jakarta: PT.
Rajagrafindo Persada.
Lisa, Oyong. 2016. Determinants Distribution of
Financing and the Implications to Profitability:
Empirical Study on Cooperative Sharia Baitul Maal
wa Tamwil (BMT) in Indonesia.
Asian Journal of
Accounting Research.
Vol 1. No. 2.
Muhammad. 2005.
Manajemen Bank Syariah,
Yogyakarta: UPP AMPYKPN
Permanasari, Erma Wahdani dan Djoko Suhardjanto.
2014. Karakteristik Perusahaan dan Credit Risk.
Jurnal Akuntansi & Auditing. Volume 10/No. 2: 215 –
235.
Purnasiwi, Jayanti dan Sudarno. 2011. Analisis Pengaruh
Size, Profitabilitas dan Leverage terhadap
pengungkapan CSR Pada Perusahaan yang Terdaftar
di Bursa Efek Indonesia.
Jurnal Universitas
Diponogoro
.
Rinati, Ina. 2008. Pengaruh Net Profit Margin (NPM),
Return On Assets (ROA) dan Return On Equity
(ROE) terhadap Harga Saham pad Perusahaan yang
Tercantum Indeks LQ45.
Jurnal Ekonomi dan
Manajemen
. Universitas Gunadarma
Sartono, A.2010.
Manajemen Keuangan: Teori dan
Aplikasi
. Edisi Keempat. BPFE. Yogyakarta.
Sawir, A. 2004.
Analisis Kinerja Keuangan dan
Perencanaan Keuangan Perusahaan
. PT.Gramedia
Pustaka Utama. Jakarta
Siamat, Dahlan. 2005.
Manajemen Lembaga Keuangan,
Penerbit Fakultas. Ekonomi universitas Indonesia
Determinant Financing Risk - Study on Sharia Cooperative incorporated in Inkopsyah
285

Silvanita, Ktut. 2009. Bank dan Lembaga Keuangan Lain,
Erlangga. Jakarta
Syamsudin, Lukman. 2001.
Manajemen Keuangan
Perusahaan: Konsep Aplikasi dalam Perencanaan,
Pengawasan, dan pengambilan Keputusan (Edisi
Baru).
Jakarta: PT. Raja Grafindo Persada.
Taswan. 2010.
Manajemen Perbankan. Yogyakarta: UPP
STIM YKPN.
Veithzal, Rivai, 2010.
Islamic Banking Sebuah Teori,
Konsep dan Aplikasi
. Jakarta : Bumi Aksara.
JCAE Symposium 2018 – Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study
286