Research Paper | Finance | Kenya | Volume 9 Issue 3, March 2020
Influence of Cost of Borrowing on Financial Performance of Selected SACCOs in Siaya County
Charles Anyango, Dr. Simeyo Otieno, Dr. Ofwa Joanes Otieno Wu'Adongo
The objective of the study was to establish the cost of borrowing on Financial performance of selected SACCOs in Siaya County, Kenya. The study was pegged on credit risk theory and loanable funds theory. This study used cross sectional research design. The target population was 43 SACCOs in Siaya County. This study used cross sectional research design. The target population was 43 SACCOs in Siaya County.A sample size of 39 SACCOs was determined by using Yamane formula (1967). Sampling techniques comprised purposive and simple random sampling. Primary data was gathered by structured questionnaires administered personally by drop and pick approach. The data was analyzed by descriptive statistics such as frequencies and percentages, calculation of means and standard deviations, as well as Pearson correlation and multiple linear regression analysis. The pilot test was conducted on the questionnaire and necessary amendments made to enable respondents answer it without any difficulty.The coefficient of determination calculated, was r2 = 0.293, indicating that about 29.3 per cent of the variation in financial performance was attributed by the cost of borrowing. This means that there was evidence of overlap between the between cost of borrowing on financial performance. The major findings therefore indicated that approximately 29.3 % of the variation in financial performance (profitability) was attributed to variation in cost of borrowing. The study therefore concludes that loans cost of borrowing influences the financial performance of SACCOs. The study recommends that SACCOs to reduce the cost of borrowing so that increase profitability can be realized. Researcher proposes further research to be conducted in banking sector so that to ascertain the influence of lending practices on financial performance in the banking industry in Kisumu County.
Keywords: Savings and Credit Management, Cost of borrowing, Financial performance
Edition: Volume 9 Issue 3, March 2020
Pages: 1221 - 1226
How to Cite this Article?
Charles Anyango, Dr. Simeyo Otieno, Dr. Ofwa Joanes Otieno Wu'Adongo, "Influence of Cost of Borrowing on Financial Performance of Selected SACCOs in Siaya County", International Journal of Science and Research (IJSR), https://www.ijsr.net/search_index_results_paperid.php?id=ART20201170, Volume 9 Issue 3, March 2020, 1221 - 1226
72 PDF Views | 50 PDF Downloads
Similar Articles with Keyword 'Financial performance'
A Study on Financial Performance of Pharmaceutical Company
Sejal S. Purabiya
Perspective of Political and Management in the Regional Financial Management Synergy
Anwar, Dina Suryawati, Hermanto Rohman, Honest D Mollasy, Agus Suharsono
Service Innovation and Financial Performance: An Empirical Analysis within Financial Institutions in Cameroon
NANA NDAMBWE Christelle Aurore
Comparison Analysis Financial Performance of Go Public Regional Development Bank Areas with Non Go Public Regional Development Bank (Case Study on PT Bank Pembangunan Daerah Jawa Barat and Banten, Tbk. and PT Bank Pembangunan Daerah DKI Jakarta Period 2011-2016)
Nurbani, Dr. Untara
Effect of Receivable Management Practices on Financial Performance; A Case Study of Deloitte East Africa Limited Authors
Chris Jared Odondi, Dr. Kennedy K. Nteere, Agnes Njeru