Moderating Effect of Size on Influence of Financial Structure on Performance of Deposit Taking Savings and Credit Cooperative Societies

The objective of the study was to determine whether a firm's size has a moderating effect on the influence of financial structure on the performance of deposit-taking SACCOs. The study used a descriptive research design, targeting eight SACCOs operating in Nyandarua County, Kenya, which SASRA licensed. Data from secondary sources was gathered from the annual reports and financial statements of SACCOs over ten years (2013-2022). A multiple regression model was used without the interaction variable first. Then, a moderated multiple regression model was used to establish the interaction effect of the firm's size on the influence of financial structure on the performance of deposit-taking SACCOs in Kenya. The study's results demonstrated a statistically significant effect of a firm's size on the influence of financial structure on the performance of deposit-taking savings and credit cooperatives. The study indicated that the interaction between SACCO's financial structure and performance is significantly influenced by its size. Therefore, SACCOs need to make sure that they stay in the right size in order to keep their high asset returns. The findings of the study will provide insight to SACCO managers on how financial structure can affect performance so that they can make decisions on optimal financial structure for the success of their SACCOs. The study will make a great contribution to the body of knowledge in the area of financial structure and financial performance of SACCOs. This information will be useful to government policymakers and regulators, such as the SACCO Societies Regulatory Authority (SASRA), in developing regulatory policies.