LIQUIDITY MANAGEMENT AND FINANCIAL PERFORMANCE OF TEACHERS DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA
DOI:
https://doi.org/10.47604/ijfa.1152Abstract views: 1084
PDF downloads: 884
Keywords:
Liquidity, financial performances, Teachers DT SaccosAbstract
Purpose: The study objective was to establish the effect of liquidity management on the financial performance of Teachers DT Saccos in Kenya and to evaluate the moderating effect of the size on liquidity management and financial performance of Teachers DT Saccos in Kenya.
Methodology: This study adopted a post-positivist research paradigm to interpret the effect of liquidity management on the financial performance of deposit-taking Saccos in Kenya. The study adopted a descriptive, survey research design. The target population was 18 Saccos classified under teachers' based DT SACCOs according to SASRA records of December 2017 (SASRA, 2018). Census Methodology was used. The study used a data capture form that has been designed by the researcher to collect the data on the independent variables of liquidity management, moderator variable size and dependent variable which was DT Saccos financial Performance. Data were analysed using a combination of descriptive and inferential statistics with the statistical package STATA. Analysed data was presented using graphs and tables.
Findings: The study established that there was a significant effect of capacity and purchased funds on the financial performance of Teachers DT Saccos. The study also established that cash position, total deposit, and core deposit had an insignificant effect on the financial performance of Teachers DT Saccos and that size of the Sacco affects the relationship between liquidity management and financial performance of Teachers DT Saccos.
Unique contribution to theory, practice and policy: The study recommended the development of a more robust liquidity monitoring policy as well as enhancement of the oversight on liquidity management practices. The study also recommended that Teachers DT Saccos should reduce the provisions of loan losses as well as their reliance on external borrowing. Further, the study recommended future studies using other factors influencing liquidity in the Teachers DT Saccos. Lastly, the study recommends a comparative study using other financial intermediaries with similar deposit and asset features such as Deposit Taking Micro Finance Institutions.
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Maina, H. (2011). Relationship between the Liquidity and Profitability of Oil Companies in Kenya. Nairobi: University of Nairobi.
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Marovza, G. (2015). Liquidity and Bank Performance: International Business and Economics Research Journal Vol. 14 no 3
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Moti, H. O., Masinde, J. S., Mugenda, N. G., & Sindani, M. N. (2012). Effectiveness of Credit Management System on Loan Performance: Empirical Evidence from Micro Finance Sector in Kenya. International Journal of Business, Humanities, and Technology, 2(6), 2162–1381.
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Mucheru, E, Shukla, J & Kibachia, J. (2017).Effect of Liquidity Management on Financial Performance of Commercial banks in Rwanda. A Study on Selected banks in Rwanda. European Journal of Business and Social Sciences, Vol.6, No. 07, October 2017.
Muli, M. M., Ariemba, J. & Evusa, Z. (2016), Effect of investment decision on the financial performance of Savings and Credit Cooperatives in Kitui central sub-county: Kenya, South Eastern Kenya University
Mumanyi, E.A.L. (2014). Challenges and Opportunities Facing SACCOs in the Current Devolved System of Government of Kenya, A case study of Mombasa County: International Journal of Social Sciences and Entrepreneurship, 1(9), 288-314.
Naceur, B. S. & Omran, M. (2011). The effects of bank regulations, competition, and financial reforms on banks' performance: Emerging Markets Review 12, 1-20.
Nedunezhian, D. V., & Premalatha M. K. 2015. A study on the liquidity and profitability of Indian private sector banks. International Journal of Marketing, Financial Services and Management Research 4 (4).
Ngui, A. N. (2010). A survey of the Use of Financial Performance Indicators by SACCOs in Kenya: An Unpublished MBA Thesis, University of Nairobi.
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Nzotta S.M. (2006). Globalization and the Nigerian Banking Industry: NESG Economic Indicators.
Okumu, O. J. & Oyugi L.(2016) Factors influencing financial performance of savings and credit cooperative societies in Kisumu county: Kenya International Journal of Current Research Vol. 8, Issue, 05, pp.31293-31310, May 2016
Okun, D.M. (2012). The effect of level of deposits on the financial performance of commercial banks in Kenya. Unpublished MBA Project, University of Nairobi, Kenya.
Olando, C.O, Mbewa, M. O. & Jagongo, A. (2012). Financial practice as a determinant of growth of savings and credit co-operative societies ‘wealth (a pointer to overcoming poverty challenges in Kenya): International Journal of Business and social science, Vol.3, no.24
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2020-10-21
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Mwangudza, C. K., Jagongo, A., & Ndede, F. W. (2020). LIQUIDITY MANAGEMENT AND FINANCIAL PERFORMANCE OF TEACHERS DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA. International Journal of Finance and Accounting, 5(2), 1 – 26. https://doi.org/10.47604/ijfa.1152
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