CORPORATE GOVERNANCE MECHANISMS AND PERFORMANCE OF SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN NAIROBI COUNTY, KENYA
Abstract
The purpose of this research was to examine the influence of corporate governance mechanisms on performance of savings and credit cooperative societies in Nairobi County, Kenya. Specifically, the examined the influence of board independence and board size on performance of savings and credit cooperative societies in Nairobi County, Kenya. Theoretical framework was informed by the agency theory, stewardship theory and stakeholder theory. The study employed the correlational, cross-sectional survey research design to test the noncausal relationships among study variables. The stratified random sampling technique was used to select a sample size of 33 deposit-taking and 91 non-deposit-taking savings and credit cooperative societies from a target population of 47 deposit-taking and 132 non-deposit-taking savings and credit cooperative in Nairobi County, Kenya. A pilot study was conducted to ascertain the validity and reliability of the constructed survey questionnaire for the study. A cross-sectional survey-based approach was used to collect primary data using self-administered structured questionnaires delivered through the drop and pick method. The collected data was processed and entered into the statistical package for social sciences (SPSS) version 26 to create a data sheet used for statistical analysis. Data analysis utilized the descriptive statistics and inferential statistics. The correlation results indicated that board independence and board size had positive and significant relationship with the performance of savings and credit cooperative societies in Nairobi County, Kenya. The regression results indicated that that board independence and board size had positive and significant influence on the performance of savings and credit cooperative societies in Nairobi County, Kenya. The research recommends that the managers and practitioners should consider a holistic reassessment and implementation of the corporate governance mechanisms to foster the performance of the performance of savings and credit cooperative societies. The policy makers should initiate policy review to motivate the managers and practitioners to consider a holistic reassessment and implementation of the corporate governance mechanisms to foster the performance of the performance of savings and credit cooperative societies.
Key words: Corporate governance mechanisms, Board size, Board independence, Firm performance, Kenya
CITATION: Ngoda, T. M., & Kising'u, T. M. (2024). Corporate Governance Mechanisms and Performance of Savings and Credit Cooperative Societies in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 11 (4), 600 – 618. http://dx.doi.Org/10.61426/Sjbcm.v11i4.3107
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i4.3107
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