Effects of Credit Management on the Financial Performance of Deposit Taking Savings And Cooperative Societies In Nakuru Town, Kenya.
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 11
Abstract
Credit management is an important component in firms that offer credit to clients. Sound credit management is a prerequisite for a financial institutions stability and profitability. The research focused on the effect of credit management on financial performance of deposit taking SACCOS in Nakuru town. The specific objectives of the study were to determine the effect of credit standard and debt recovery on the financial performance of deposit taking SACCOS. The study employed descriptive research design.The target population of the study was 220 employees of the selected SACCOs in Nakuru Town. A stratified random sample of 74 employees was used in the study. Data was obtained through questionnaires administered to employees. Both descriptive and inferential statistics were used in analyzing data with the help of statistical package for social sciences (SPSS) version 16.0. The regression results showed that credit standard (β2 =0.280, p=0.004) and debt recovery (β2 =0.237p =0.006), had a positive and significant effect on the financial performance of the SACCOS. The study concluded that all the variables under study are statistically significant in explaining the financial performance of SACCOs. The study has contributed in the addition of literature on credit management of the deposit taking SACCOs, especially in the developing countries. The study recommends that SACCOs should create effective credit management standard and enhance debt recovery techniques.
Authors and Affiliations
Mercy. N. Juma, Robert Otuya, Patrick Kibati
Keywords
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- EP ID EP413154
- DOI 10.9790/487X-2011016978.
- Views 60
- Downloads 0
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