Abstract: The study sought to examine the effect of firm characteristics on loan performance of deposit-taking SACCOs in Kenyan Nairobi City County. Particularly, the study analyzed firm size, liquidity, and capital adequacy effects on loan performance of deposit-taking SACCOs in Nairobi City County. The research was predicated upon credit default theory, information asymmetry theory as well as capital-buffer theory. Panel regression analysis alongside descriptive techniques was adopted. The survey covered 40 Deposit Taking SACCOs that were operational within the period 2015 and 2020 where a census approach was applied. Data were sourced using a data collection guide with such information retrieved from audited statements of accounts of the DT-SACCOs. The result found that firm size has a significant positive effect on loan performance. Capital adequacy has an insignificant positive effect on loan performance. Liquidity has an effect that is not significantly positive on loan performance. Suggestions from the survey noted that the managers of DT-SACCOs should effectively implement capital adequacy regulations to ensure their buffers can meet the loan needs of their customers in Kenya. This would enhance the capital base of the SACCOs thus, improve the DT-SACCOs’ loan performance.
Keywords: Firm Characteristics, Firm Size, Capital Adeqaucy, Liquidity and Loan Performance.
Title: FIRM CHARACTERISTICS AND LOAN PERFORMANCE OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN NAIROBI CITY COUNTY, KENYA
Author: Rutere Wamuyu Purity, Charity Njoka
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 11, Issue 2, October 2023 - March 2024
Page No: 73-83
Research Publish Journals
Website: www.researchpublish.com
Published Date: 14-November-2023
