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An empirical analysis of the characteristics of savings and credit cooperatives participating in the reporting excellence awards in Kenya

An empirical analysis of the characteristics of savings and credit cooperatives participating in... PurposeIn Kenya, an award for reporting excellence is presented annually to the entities in the public and private sector. The purpose of this paper is to examine the characteristics of savings and credit cooperatives (SACCOs) that apply for the annual reporting excellence award in Kenya.Design/methodology/approachThe study employs correlation and probit regression analyses to establish the factors which explain the decision by SACCOs to participate in the Financial Reporting (FIRE) excellence award. The study utilizes data consisting of 1,272 firm-year observations for 212 SACCOs, over the period 2008-2013.FindingsConsistent with institutional and legitimacy theories, the results demonstrate that structural and governance variables are significant and positively associated with the decision to participate in the annual FIRE awards by SACCOs in Kenya. Similarly, larger SACCOs and those that have adopted best cooperative governance practices are more likely to participate in the annual FIRE awards. The results also reveal that SACCOs audited by the Big 4 audit firms are more likely to participate in the annual FIRE awards.Research limitations/implicationsThe study focuses on the factors explaining the decision to participate in the annual reporting excellence awards by organizations in a specific sector. Further studies can adopt a multi-sectoral approach to investigate the same phenomenon.Practical implicationsThe findings highlight the importance of cooperative governance and resources in explaining why SACCOs choose to participate in the FIRE awards.Originality/valueThe study adds onto the dearth of literature on the aspect under focus. Globally, very few studies have examined the drivers of the decision to participate in reporting excellence awards by organizations. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Accounting in Emerging Economies Emerald Publishing

An empirical analysis of the characteristics of savings and credit cooperatives participating in the reporting excellence awards in Kenya

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
2042-1168
DOI
10.1108/JAEE-03-2016-0023
Publisher site
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Abstract

PurposeIn Kenya, an award for reporting excellence is presented annually to the entities in the public and private sector. The purpose of this paper is to examine the characteristics of savings and credit cooperatives (SACCOs) that apply for the annual reporting excellence award in Kenya.Design/methodology/approachThe study employs correlation and probit regression analyses to establish the factors which explain the decision by SACCOs to participate in the Financial Reporting (FIRE) excellence award. The study utilizes data consisting of 1,272 firm-year observations for 212 SACCOs, over the period 2008-2013.FindingsConsistent with institutional and legitimacy theories, the results demonstrate that structural and governance variables are significant and positively associated with the decision to participate in the annual FIRE awards by SACCOs in Kenya. Similarly, larger SACCOs and those that have adopted best cooperative governance practices are more likely to participate in the annual FIRE awards. The results also reveal that SACCOs audited by the Big 4 audit firms are more likely to participate in the annual FIRE awards.Research limitations/implicationsThe study focuses on the factors explaining the decision to participate in the annual reporting excellence awards by organizations in a specific sector. Further studies can adopt a multi-sectoral approach to investigate the same phenomenon.Practical implicationsThe findings highlight the importance of cooperative governance and resources in explaining why SACCOs choose to participate in the FIRE awards.Originality/valueThe study adds onto the dearth of literature on the aspect under focus. Globally, very few studies have examined the drivers of the decision to participate in reporting excellence awards by organizations.

Journal

Journal of Accounting in Emerging Economies – Emerald Publishing

Published: May 8, 2018

References

  • FIRE award: promoting transparency and accountability in the cooperative sector
  • Effective cooperative governance: a practitioner’s perspective
  • The determinants and consequences of heterogeneous IFRS compliance levels following mandatory IFRS adoption: evidence from a developing country
  • An institutional theory perspective on the DGR framework, case-mix accounting systems and health-care organizations
  • An institutional perspective on the rise, social transformation and fall of a university budget category
  • An analysis of incentives for Australian firms to apply for reporting excellence awards
  • The iron cage revisited: institutional isomorphism and collective rationality in organizational fields
  • An economic analysis of participation in the municipal finance officers association certificate of conformance program