dc.description.abstract | The relationship between corporate governance (CG) and financial performance (FP) has garnered interest from both scholars and policymakers, but there is no convergence in the existing literature as to whether CG directly boosts FP or shapes funding structure, which consequently leads to better FP. It is also unclear if the CG-FP relationship depends on regulatory framework. The main objective of this study was to determine the relationship among CG, funding structure, regulatory framework and FP of deposit taking SACCO’s in Kenya. The specific objective were: to examine the effect of CG on FP of deposit taking SACCO’s in Kenya; to determine the mediating effect of the funding structure on the relationship between CG and FP of deposit taking SACCO’s in Kenya; to establish the moderating effect of regulatory framework on the relationship between CG and FP of deposit taking SACCO’s in Kenya; and finally, to assess the joint effect of CG, funding structure and regulatory framework on FP of deposit taking SACCO’s in Kenya. The study is based on agency, stewardship, stakeholder and free cash flow theories and follows a positivist research paradigm. The study adopted correlational research design, surveying all 172 deposit taking SACCO’s in Kenya. The study employed longitudinal dataset for the period 2018 to 2022 which was obtained from yearly financial reports of deposit taking SACCO’s as well as annual Sacco supervision reports published by Sacco Societies Regulatory Authority (SASRA).The data was analyzed using both descriptive and inferential statistics. The study found a significant positive relationship between CG and FP. Funding structure partially mediated the relationship between CG and FP. Regulatory framework moderated the relationship between CG and FP, showing a synergistic interaction. Finally, a significant joint effect of CG, funding structure and regulatory framework on FP was established. The research made contributions to theory development, policy formation, and management practices. The findings supported the postulations of agency, stewardship, stakeholder and free cash flow theories. The study findings offer valuable policy insights to regulators such as SASRA on matters concerning CG, funding structure, regulatory framework and their influence on FP. The findings also equip management of deposit SACCO’s’ to craft sound and appropriate strategies on issues to do with CG, funding structure, adherence to regulatory requirements and FP. The study had limitations such as focusing only on deposit taking SACCO’s and ignoring other kinds of SACCO’s as well as confining the scope of the study to SACCO’s’ alone and overlooking other financial institutions such as Microfinance Institutions (MFIs) and commercial banks which limits generalizability of study outcomes. Another limitation is the use of a short study timeframe which hinders establishment of meaningful patterns and trends. The suggestions for further research include conducting studies that include all kinds of SACCO’s or looking at the entire financial sector instead of deposit taking SACCO’s. Future studies can also employ a longer study time period beyond 5 years so as to establish clear trends and patterns of variable behaviour. Furthermore, upcoming studies can apply other robust estimation techniques such as Structural Equation modeling (SEM) which evaluate multi-mediation as well as moderated mediations. | en_US |