Open Access
American Research Journal of Business and Management
ISSN (Online): 2379-1047
DOI: 10.46568/arjbm
The Moderating Influence of Liquidity on the Relationship between Corporate Governance Practices and Dividend Policy of Deposit-Taking SACCOs in Kenya
1PhD (Finance) Student, Masinde Muliro University of Science & Technology. Kakamega, Kenya.
2Lecturer, Department of Accounting and Finance, Kakamega, Kenya.
3Prof, Department of Accounting and Finance, Kakamega. Kenya
Peter A.Vuhya, Dennis M. Bulla, Benedict O. Alala, “The Moderating Influence of Liquidity on the Relationship
between Corporate Governance Practices and Dividend Policy of Deposit-Taking SACCOs in Kenya”, American Research
Journal of Business and Management, Vol 10, no. 1, 2024, pp. 59-64.
Abstract
This study investigates how liquidity moderates the relationship between corporate governance practices and the
dividend policy of deposit-taking SACCOs in Kenya. Using a sample of 201 SACCOs, we applied both descriptive and
inferential statistical methods to analyze the data. The results show that liquidity significantly moderates the impact
of corporate governance on dividend policy. Specifically, robust board characteristics, well-composed audit committees,
ownership structures, and transparent financial reporting positively influence dividend policy, with these effects being
more pronounced under higher liquidity levels. The findings suggest that enhancing liquidity management can amplify the positive effects of corporate governance practices on dividend distribution decisions.
