CREDIT MANAGEMENT PRACTICES, FIRM SIZE AND FINANCIAL SUSTAINABILITY OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA
The study examined the moderating effect of firm size on the relationship between credit management practices and the financial sustainability of DT-SACCOs in Kenya. The study was grounded in information asymmetry theory, utilising a positivist paradigm and an exploratory research design. Th...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
“Victor Slăvescu” Centre for Financial and Monetary Research
2025-06-01
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| Series: | Financial Studies |
| Subjects: | |
| Online Access: | http://fs.icfm.ro/Paper01.FS2.2025.pdf |
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| Summary: | The study examined the moderating effect of firm size on the
relationship between credit management practices and the financial
sustainability of DT-SACCOs in Kenya. The study was grounded in
information asymmetry theory, utilising a positivist paradigm and an
exploratory research design. The target population consisted of 176
finance managers from 176 DT-SACCOs, providing a robust
framework for analysis. The sample size was obtained using Yamane's
formula, which resulted in 122 respondents, with a high response rate
of 98 per cent for the structured questionnaires administered. Data was
analysed using descriptive and inferential statistics. The inferential
statistics revealed a strong positive association between credit
management practices and financial sustainability, with p-values of
0.013. Notably, the Nagelkerke R-squared change demonstrated that
firm size moderates the connection between credit management
practices and financial sustainability. The study recommends
enhancing financial sustainability through credit information sharing
and establishing a deposit guarantee fund to protect members' funds
in the event of license revocation or closure. |
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| ISSN: | 2066-6071 |