Publication: Influence of current asset management on financial performance of selected savings and credit cooperative societies in Meru county, Kenya
| dc.contributor.author | Chari, Gubo Mato | |
| dc.date.accessioned | 2024-09-09T09:07:26Z | |
| dc.date.available | 2024-09-09T09:07:26Z | |
| dc.date.issued | 2024-06 | |
| dc.description.abstract | Saccos were intended to provide a variety of financial services tailored to market demands for their clients. To successfully offer these services, they needed a well-managed and robust current asset’s structure, maintained by qualified personnel. Effective asset management would enable Saccos to meet their obligations promptly. However, Kenyan Saccos have faced issues with low liquidity ratios, struggling to maintain the required 15% monthly legal cashflow ratios, often relying on expensive bank loans for support. The main aim of the study was to investigate how current asset management influences the financial performance of savings and credit cooperative societies in Meru County, Kenya. The specific objectives were to assess the impact of cash management, debtors’ management, short-term securities management, and inventory management on the financial performance of these societies. The study applied pecking order theory to cash and short-term securities management, contingency theory to debt management, and resource-based view theory to inventory management. A descriptive research design was chosen to gather data from 24 deposit and non-deposit Saccos in Meru County. The sample included 42 customer care officers, 114 tellers, 93 back-office staff, and 120 loans officers, totaling 369 respondents. Using a simple random sampling method, the study selected 13 customer care officers, 34 tellers, 28 back-office staff, and 36 loans officers, totaling 111 respondents. Both quantitative and qualitative data were collected using closed-ended questionnaires and financial statements. A pilot study was conducted at Unison Sacco in Isiolo County with a sample of 1 customer care officer, 3 tellers, 3 back- office staff, and 4 loan officers. Reliability was assessed using Cronbach's alpha coefficients, and validity was measured through face, content, and construct types. Data analysis was performed using SPSS version 24, including both quantitative and qualitative data from questionnaires and financial reports. Descriptive statistics such as frequency, percentage, and mean were calculated. Diagnostic statistics including normality, linearity, multicollinearity, and correlation tests were conducted to ensure data suitability. Inferential statistics such as model summary, ANOVA, and regression coefficients were also utilized. The findings were essential for Sacco management, providing insights into how the management of various current assets—such as cash, debtors, short-term securities, and inventory—can be optimized to enhance the liquidity of the institutions. | |
| dc.identifier.uri | https://erepository.mku.ac.ke/handle/123456789/6664 | |
| dc.language.iso | en | |
| dc.publisher | Mount Kenya University | |
| dc.subject | Financial services | |
| dc.subject | Asset management | |
| dc.subject | Cashflow ratios | |
| dc.subject | Inventory | |
| dc.subject | Financial performance | |
| dc.title | Influence of current asset management on financial performance of selected savings and credit cooperative societies in Meru county, Kenya | |
| dc.type | Thesis | |
| dspace.entity.type | Publication |