The relationship between corporate governance Practices and the growth of SACCOs in Nairobi County
Abstract
The study sought to examine the
relationship between corporate governance practices and the
growth of SACCOs in Nairobi County. The study targeted active SACCOs operating in Nairobi
County as at 31
st
December, 2012.
The corporate governance practices and the growth of
SACCOs in Nairobi c
ounty study is expected to influence the Kenyan government
decision in
SACCOs supervision. This is because the SACCOs growth creates jobs in the Country.
A total of 38 SACCOs operating in Nairobi
County
for the period January 2008 to December
2012
were stu
died and
descriptive statistics such as percentages, frequencies and tables were
used to analyze the data. Statistical package for social sciences (SPSS) was also used to aid in
analysis. The regression model was used to study the relationship between corp
orate governance
practices and the growth of SACCOs.
Four dimensions of corporate governance practices i.e.
Board
composition (gender diversity), Education level of the board members
,
CEO duality and
number of the board members were used as independent
variables and
percentage of
annual
net
change
s
in loan
divided by total loans
as growth measurement which is the dependent variable in
study.
The overall findings confirmed that there is no relationship between corporate governance
practices and the growt
h of SACCOs in Nairobi County
.
There is a possibility of other multiple
variables influencing the growth of SACCOs in Nairobi
County
that should be incorporated in
the regression model to ascertain
all the influential factors.
Citation
MBASponsorhip
University of NairobiPublisher
University of Nairobi