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dc.contributor.authorAtsango, Valery L
dc.date.accessioned2019-02-06T06:48:36Z
dc.date.available2019-02-06T06:48:36Z
dc.date.issued2018
dc.identifier.urihttp://hdl.handle.net/11295/106413
dc.description.abstractFirm characteristics are very crucial for the performance of firms in general and Deposit taking savings and credit cooperative societies. The current study therefore sought to examine the effect of firm characteristics on profitability of deposit Taking Savings and Credit Cooperative Societies in Kenya. The study was based on three theories including Resource Based View theory, Efficient Market Hypothesis and Liquidity Preference Model. The current research adopted a descriptive survey design to establish the effect of firm characteristics on profitability of DT-SACCOs in Kenya. Specifically the study targeted 135 DT-SACCOs that are fully licensed by SASRA before the study period and have financial data for the five year period of the study from 2013-2017. The sample size was 56 DT-SACCOs. The study employed simple random sampling to select the number of DT-SACCOs that formed part of the study. Study relied on Secondary data on the financial performance of DT-SACCOs retrieved from the SASRA SACCOs supervision annual reports for the five years 2013,2014,2015,2016 and 2017. Individual SACCOs also provided audited financial statements for the last five years. The retrieved data was recorded on data collection sheets. The data recorded on data collection sheets were keyed in Microsoft excel and the excel file exported to STATA version 14. The data were analysed with aid of STATA where descriptive and inferential statistics were generated. The descriptive analysis involved mean, standards deviation, Minimum and maximum. The Inferential statistics involved diagnostic test and panel data regression analysis. The overall significance of the model was examined at 5% level of significance using F-test while the significance of individual independent variables were examined at 5% level of significance using student t-test.If the value of significance is less than the thresh hold of 5%, then the variable or the model is said to be statistically significant. The data was subjected to diagnostic tests to evaluate conformity with multiple regression model assumptions. This ensured validity of the results. The study employed normality, heteroscedasticity, multicollinearity, serial correlation and unit root diagnostic tests. The findings established that Leverage had a statistically insignificant effect on profitability of DT-Saccos in Kenya, Operational efficiency had a statistically significant effect on profitability of DT-Saccos in Kenya, asset quality had a statistically significant effect on profitability performance of DT-Sacco in Kenya. Finally, the study established that capital adequacy had statistically insignificant effect on profitability of DT-Saccos in Kenya. The study concludes that Firm size, asset quality and operational efficiency had statistically significant effect on profitability while leverage and capital adequacy did not show significant effect on profitability of DT saccos. “Based on the conclusions, a “Management of DT-Saccos has to continue working on the operational efficiency as improved efficiency translates to improved profitability. Additionally, the management of DT-Saccos should put more emphasis in offering loans to clients who are in a position to pay back on time as agreed this will help in lowering the level of nonperforming loans within the DT-Saccos sub sector. Finally, study further suggest to SASRA to inform the investing public of any DT-Sacco carrying out major restructuring such that they are aware before making any decision since the value of the firm may change greatly during and after major restructuring.en_US
dc.language.isoenen_US
dc.publisherUniversity of Nairobien_US
dc.rightsAttribution-NonCommercial-NoDerivs 3.0 United States*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/us/*
dc.subjectProfitability Of Deposit Taking Sacco’S In Kenyaen_US
dc.titleRelationship Between Firm Characteristics And Profitability Of Deposit Taking Sacco’S In Kenyaen_US
dc.typeThesisen_US


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