Abstract: The study sought to establish the effect of firm characteristics and profitability of deposit taking SACCOS in Nairobi, Kenya. The specific objectives are to determine the effect of firm size, capital adequacy and liquidity on profitability of deposit taking SACCOS in Nairobi, Kenya. The study made use of Market Power Theory, Capital Buffer Theory and Agency Theory to support the relationship between the independent and dependent variables of the study. Causal research design was applied on a population made up of all the licensed deposit taking SACCOS under SASRA in Nairobi County, Kenya for the period 2014 to 2017 which are 34 in number. The study was based on a census approach. The study findings on the descriptive analysis indicate that firm size and profitability Deposit Taking SACCOs in Nairobi Kenya had high fluctuations whereas capital adequacy and liquidity had minimal fluctuations over the study period. The study concluded that firm size had significant effect on profitability of Deposit Taking SACCOs in Nairobi Kenya. The study concluded that capital adequacy and liquidity insignificant effect on profitability of deposit taking SACCOS in Nairobi, Kenya. The study therefore recommends that deposit taking SACCOS should put in place a well-functioning structure in line with growing firm size. This should be done for purposes of eliminating the bureaucracies that comes along with a growing firm size which in turn will ensure the profitability of deposit taking SACCOS in Nairobi, Kenya.
Keywords: Firm Characteristics, Firm Size, Capital Adequacy, Liquidity and Profitability.
Title: FIRM CHARACTERISTICS AND PROFITABILITY OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN NAIROBI CITY COUNTY, KENYA
Author: Mwangi Macharia Robert, Peter Ng’ang’a
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
