CONTROL ENVIRONMENT AND FINANCIAL PERFORMANCE OF SAVINGS AND CREDIT COOPERATIVES (SACCOs) IN MID-WESTERN UGANDA
DOI:
https://doi.org/10.47672/ijbs.578Keywords:
Control Environment, Financial Performance and SACCOsAbstract
Purpose: To establish the relationship between control environment and financial performance of SACCOs in Mid-Western Uganda.
Methodology: A cross-sectional research design and positivist paradigm were used to collect data from 93 SACCOs in Mid-Western Uganda. A closed-ended questionnaire was used to collect data. Correlation and standard linear regression analyses were conducted.
Findings: The study findings reveal a strong, positive and significant relationship between control environment and financial performance of SACCOs in Mid-Western Uganda.
Unique contribution to practice and policy: This study emphasizes the need for top management to emphasize the importance of designing and implementing effective and efficient control environment. In addition, the government of Uganda needs to review its strategies that are geared at ensuring that SACCOs achieve sustainable financial performanceDownloads
References
AMFIU. (2014/2015). The State of Microfinance in Ugnda. Kampala: AMFIU.
Asiligwa, R. G. (2017). The Effect of Internal Controls on the Financial Performance of Commercial Banks in Kenya. IOSR Journal of Economics and Finance, 8(3), 92-105.
Bashabe, S., Kalu, E., & Amu, C. (2017). Credit Risk Management and Financial Performance of Microfinance Institutions in Kampala, Uganda. Journal of Banking and Financial Dynamics, I(1), 29-35.
Blumberg, B., Cooper, & Scindler. (2008). Busienss Research Methods (Second European Edition ed.). London: MCGrwa-Hill.
Channar, Z. A., Khan, M., & Shakri, I. H. (2015). Internal Control Effectiveness and its Relationship with Financial Performamnce. IBT Journal of Business Studies(Formerly Journal of Management and Social Sciences), II(2), 92-107.
COSO. (2013). Internal Control-Intergrated Framework.
Fujo, K. G., & Ali, A. I. (2016). Factors Affecting Financial Performance of Savings and Credit Societies in Kilifi County: A case of Imaraka SACCO. The International Journal of Business and Management.
Ireri, S. K., & Wagoki, J. (2014). Assessing the Role of Internal Control Systems Components in Kenyan Public Universities: A case of Jomo Kenyatta University of Agriculture and Technology. Journal of Accounting and Financial Management, 4(3), 17-28.
Kamukama, N., & Natamba, B. (2013). Social Capital: Mediator of Social Intermediation and Financial Services Access. International Journal of Commerce and Management, 23(3), 204-215.
Kinyua, J. K., Gekure, R., Gekara, M., & Orwa, G. (2015). Effect of Internal Control Environment on Financial Performance of Companies Quoted in the Nairobi Securities Exchange. International Journal of Innovative Finance and Economics Research, 3(4), 29-48.
Lasisi, T. I. (2017). The Relationship between Corporate Governance and Organisational Performance in Nigerian Companies. What do we know? Economics Journal, 117(517), F1-F10.
Magu, J. K., & Kibati, P. (2016). Influence of Internal Control Systems on Financial Performance of Kenya Farmers' Association Limited. International Journal of Economics, Commerce and Management, IV(4).
Marwa, N., & Aziakpono, M. (2015). Financial Sustainability of Tanzanian Savings and Credit Cooperatives. International Journal of Social Economics, 42(10), 870-887.
Mutua, F. M., & Ali, A. I. (2017). Factors Influencing Financial Sustainability of Microfinance Institutions in Mombasa. International Journal of Social Sciences and Information Technology, III(VIII).
Mwakimasinde, M., Odhiambo, A., & Byaruhanga, J. (2014). Effects of Internal Control Systems on Financial Performance of Sugarcane Outgroweres in kenya. IOSR Journal of Business and Management, 16(12), 62-73.
Ndiege, B. O., Mataba, L., Msonganzila, M., & Nzilano, K. L. (2016). The Link between Financial Performance and Loan Repayment in Tanzanian SACCOs. African Journal of Business Management, 10(4), 89-97.
Ngari, M. G. (2017). The Effect of Internal Controls on Financial Performance of Microfinance Institutions in Kenya. International Journal of Economics and Finance, 2(3), 112-140.
Oyoo, C. O. (2014). Effect of Internal Control on Financial Performance of Microfinance Institutions in Kisumu Central Constituency. Scholarly Journal of Scientific Research Essay(SJSRE), 3(10), 139-155.
PROCASUR. (2012). An overview of SACCOs in Kenya: in pursuit of ideas to develop Savings and Credit Cooperatives, learning from Kenyan SACCOs.
report, P. (2012). An overview of SACCOs in Kenya:in pursuit of ideas to develop Savings and Credit Cooperatives, leaning from Kenya SACCOs.
Sahabi, I., Diibuze, G., & Abubakari, M. (2017). The Impact of Internal Control Systems on Financial Performance: The case of Health Institutions in Upper West Region of Ghana. International Journal of Academic Research in Business and Social Sciences, 7(4).
Sama, M. C., & Niba, A. N. (2016). Internal Controls and the Incidence of Fraud in Microfinance Institutions in Southwest Region of Cameroon. Research Journal of Finance and Accounting, 7(2).
Shafawaty, S. M., Ram, S. J., & Abu, B. (2016). Effects of Internal Control Systems on Cooperatives' profitability: A case of Koperasi ABC Berhad. International Review of Management and Marketing, 6, 240-245.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2020 Baguma John Muhunga Kule, Nixon Kamukama, Nsambu Frederick Kijjambu
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
