INFLUENCE OF MANAGEMENT ACCOUNTING INFORMATION SYSTEMS ON THE FINANCIAL PERFORMANCE OF DEPOSIT TAKING SACCOS IN WESTERN REGION, KENYA

Abstract

Purpose: The study sought to investigate the influence of management accounting information systems on the financial performance of Deposit taking Sacco’s in western region, Kenya Methodology: The study adopted descriptive explanatory research design, 7 deposit taking SACCOs from western region with a total population of 61 employees in the management positions. Data was collected using questionnaires and analyzed through inferential statistics which involved testing of hypotheses using simple correlation regression model at 95% confidence level, multiple and hierarchical and descriptive statistics were also used, which included the use of frequencies and percentage. Data was presented by use of tables and figures. Findings: Findings of the study showed scope of MAIS had positive beta coefficient (β1=0.409, p=0.017) indicating that MAIS scope has significant influence on the financial performance of Deposit Taking Saccos Western Region, timeliness of MAIS had positive beta coefficient (β2=0.415, p=0.008 suggesting that MAIS timeliness has significant influence on the financial performance of Deposit Taking Savings and Credit Co-Operative Societies Western Region, aggregation of MAIS had positive beta coefficient (β3=0.329, p=0.021) revealing that MAIS aggregation has significant influence on the financial performance of Deposit Taking Saccos Western Region and integration of MAIS had positive beta coefficient (β4=0.392, p=0.010) indicating that there is significant influence of MAIS integration on the financial performance of Deposit Taking Saccos Western Region. Unique contribution to theory, practice and policy (recommendation): The study recommended that Deposit taking Sacco’s implement Management Accounting Information System in their operational framework as it would lead to improved financial performance.