Abstract:
The main focus of this study was to analyse the relationship between board
composition and the financial performance of farmers' cooperative
societies in Kericho County, Kenya. The study was based on the
Stakeholder Theory and adopted a correlational research design. The
target population consisted of accounting officers, auditors, chief
executive officers, directors, managers, and employees from the 51
farmers' cooperative societies registered by the Ministry of Cooperatives
in Kericho County. A sample size of 303 participants was determined
through Yamane's (1967) formula. Data was collected using a structured
questionnaire, and subject experts were consulted to enhance the validity
of the research instrument. The instrument's reliability was measured
using Cronbach's alpha coefficient, which yielded a result of 0.8999,
indicating sufficient reliability for the study. A pilot study was conducted
in Bomet County, using 10% of the sample size to evaluate the research
instrument's validity. The data from the study was analysed using
descriptive statistics, that is, mean and standard deviation, and inferential
statistics using correlation and multiple regressions. The results were
presented using frequency tables. The study found that board composition
was statistically significant (Beta=0.431; p=0.000<0.055) and positively
influenced the financial performance of farmers' cooperative societies.
Overall, the study concluded that board composition had a positive
statistically significant relationship with the financial performance of the
farmer cooperative societies. The findings from this study could be used
to improve the delivery of services to farmers by cooperative society
management. It can also help policymakers, such as the government and
other stakeholders, make informed decisions and policies to enhance the
performance of cooperative societies across the country. Finally, the
study's findings will benefit researchers interested in studying the
relationship between board composition and the financial performance of
farmers' cooperative societies.
