Indonesia Conference Directory

This study is intended to determine the effect of the literacy level of Islamic cooperative members on the financial performance of these institutions. It analyzes 14 Sharia cooperatives in the Special Region of Yogyakarta as samples, which were selected using the purposive sampling method. The measurement of cooperative literacy uses 6 indicators, which is measured the knowledge of institutional identity (JDL), the duties and obligations of institutions (TDK), the organizational institutions (KL), the role of cooperative members (PA), the deposits mechanisms (MS), as well as the financing mechanisms (MP). Financial performance is measured using net income, total assets, total deposits, solvability, liquidity, and profitability. The results show that all cooperative literacy indicators have a significant influence on the level of cooperative literacy. Meanwhile, the cooperative literacy of members does not have a significant positive effect on the financial performance of the institutions. It tends to be due to the lack of cooperative education for its members so that they do not have enough knowledge about all aspects of their cooperatives.