Drivers of financial and social disclosure by savings and credit cooperatives in Kenya: A managerial perspective

摘要

This study analyses managerial perspectives on the rationaleand drivers of disclosures by deposit-taking savings and credit cooperatives (SACCOs) in a developing economy characterized by the mostvibrant SACCO sector in Africa. The study analyses the views of 106 preparers of SACCO disclosures. Principal Component-Factor analyses and ordinary least squares regression approaches are utilized to establish significant disclosure items and drivers. The findings show that SACCO disclosures are mainly addressed to members and the regulator. SACCOs provide disclosures to comply with regulations as well as build their image. The results reveal that disclosures by SACCOs in Kenya mainly center on mandatory financial aspects, which is followed by voluntary disclosure on strategic aspects, social aspects, governance aspects and environmental conservation in that order. The findings show that disclosures by SACCOs in Kenya are positively influenced by governance. According to the findings, the influence of the disclosure guidelines issued by the professional accounting body in Kenya and financial performance on disclosure seem to be weak.Other significant drivers of disclosure by SACCOs include resources (assets) and licensing.The findings are useful to policy makers in designing anoptimal disclosure policy for SACCOs in a developing country context.