Working Capital Management and Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in Central Region, Kenya

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dc.contributor.authorWangechi, Samuel Wanjohi
dc.contributor.authorIrungu, Anthony Mugetha
dc.date.accessioned2023-05-18T12:45:37Z
dc.date.available2023-05-18T12:45:37Z
dc.date.issued2023
dc.descriptionArticleen_US
dc.description.abstractThe goal of the investigation was to determine the effect of management of working capital on the financial performance of deposit-taking SACCOs in Central Region, Kenya. The investigation sought the impact of accounts receivable, accounts payable management, and cash management on performance. The theoretical literature review concentrated on conversion Cycle Theory, agency theory, transaction cost theory, and pecking order theory. The study adopted a causal research design. In this investigation, 27 DT SACCOs in Central Region, Kenya were the target population. Due to small and manageable size of the SACCOs, the study used a census. Five years of secondary data was collected (2017- 2021). The data was analyzed using descriptive, trend analysis and panel regression. The investigation indicated that cash management had a progressive and noteworthy coefficient of (β was 0.219, p was 0.000). The findings further confirms that accounts receivable management had a progressive and noteworthy influence on financial success of the SACCOs (β was 0.005, p=0.002). Further, accounts payable management had a negative and unworthy effect on financial success of the SACCOs (β was -0.004, p was 0.081). Government and the Ministry of Cooperatives could create policies that are fit for the execution of cash management and accounts receivable practices in SACCOs. This will enhance efficiency and uniformity in the adoption and use of working capital practices in SACCOs. SACCOs should invest more in cash management practices since it had the highest impact on financial performance. Also, the report suggests that SACCOs establish a norm of standard liquidity place to lower the risk of losses due to excess cash at the workplace, which could arm the performance of SMEs. However, SACCOs should not emphasize accounts payable since it did not affect their financial performance.en_US
dc.identifier.citationWangechi, S. W., & Irungu, A. M. (2023). Working Capital Management and Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in Central Region, Kenya. Journal of Finance and Accounting, 3(1), 34-46.en_US
dc.identifier.issn2789-0201
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/25345
dc.language.isoenen_US
dc.publisherEdinBurg Peer Reviewed Journals and Books publishersen_US
dc.subjectWorking capital managementen_US
dc.subjectaccount payableen_US
dc.subjectaccount receivablesen_US
dc.subjectcash managementen_US
dc.subjectfinancial performanceen_US
dc.titleWorking Capital Management and Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in Central Region, Kenyaen_US
dc.typeArticleen_US
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