Influence of Board Characteristics on Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in Western Kenya

Influence of Board Characteristics on Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in Western Kenya

Julius N. Menge

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Victor Mogusu Nyangau

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Dr. Josephat Oluoch Oluoch

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Kisii University

Influence of Board Characteristics on Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in Western Kenya

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Abstract

Deposit taking Savings and Credit Cooperatives form an integral part of Kenya’s economy by mobilizing savings and promoting credit creation. Statistics indicate that DT-Saccos contribute up to 23% to Kenya’s GDP, both directly and indirectly. However, the performance of a number of these DT-SACCOs in the western part of Kenya have shown to be reporting reduced profits indicating challenges with their financial performance. Prior studies on the performance of these SACCOs have not focused on the role of board characteristic on financial performance of these SACCOs. The purpose of this research was to examine influence of board characteristics on financial performance of deposit taking SACCOs in the country. Specifically, this study examined board accountability, corporate size and board independence and how they affect the performance. The study was anchored on the Agency theory and the Stakeholder theory. The study adopted a descriptive survey design to address the research problem. The target population consisted of 19 deposit taking Saccos licensed Saccos by SASRA and operating in Western Kenya.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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How to Cite This Article

Julius N. Menge. 2021. \u201cInfluence of Board Characteristics on Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in Western Kenya\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 21 (GJMBR Volume 21 Issue D1).

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GJMBR Volume 21 Issue D1

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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-D Classification JEL Code: F65

Submission ReceivedApril 6, 2021
Peer Review Double Blind
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Accepted May 3, 2021
Published May 15, 2021

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July 9, 2021

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