Effect of operational and market risk exposures on financial performance of DT-Saccos in Kenya

• Main Author: Sisimonda Kinya Mwanja
• Format: Article
• Language: English
• Published: Ümit Hacıoğlu 2021-08-01
• Series: International Journal of Research In Business and Social Science
• Subjects: financial performance, operating risk exposure, operational efficiency risk exposure, interest rate risk exposure, foreign exchange operating risk exposure.
• Online Access: https://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/1282

The main aim of the investigation was to analyze the effect of operational and market risk exposures on the financial performance of DT-SACCOs in Kenya. The specific objectives of the study were to; assess the effect of operating expense risk exposure on the financial performance of DT-SACCOs in Kenya; To establish the effect of operation efficiency risk exposure on the financial performance of DT-SACCOs in Kenya; Effect of interest rate risk exposure on the financial performance of DT-SACCOs in Kenya; Effect of foreign exchange rate risk exposure on the financial performance of DT-SACCOs in Kenya. Effect of operational and market risk exposure on the financial performance of DT-SACCOs in Kenya. The study used panel data between the years 2010-2019 which was 10 years period. The results revealed that at both bivariate and multivariate regression operating expense risk, operating efficiency and foreign exchange risk exposure had a significant effect on the financial performance of DT-SACCOs in Kenya. Only interest rate risk exposure did not have a significant effect on the financial performance of DT-SACCOs in Kenya.