IJIMT 2017 Vol.8(5): 374-380 ISSN: 2010-0248
doi: 10.18178/ijimt.2017.8.5.756

The Influence of Corporate Disclosure on Credit Process Innovation in Savings and Credit Cooperative Organizations

Habineza Jackson, Luyonga Hakim, Habimana Theogene, and Mukasafari Chantal
Abstract— Although corporate disclosure is a useful tool in credit process, risk exposure and management are increasingly becoming the core challenges of modern business enterprises in various sectors. The general objective of this research was to assess whether corporate disclosures are contributing to access to credit innovation process. The analytical research design was used, the population number of Ubaka Savings and Credit Co-operative Organization (SACCO) selected randomly for study totals to 142 include 25 from employees and 117 from depositors and borrowers who worked with Ubaka SACCO at least two years. In using the Yamane’ formula, the sample size was equal to 104. The sampling technique that was used in this study is purposive sampling method, questionnaires were used as data collection instruments. Both inferential and descriptive statistics were used in this study. The statistical tool of analysis that the researcher used was the Statistical Packaging for Social Sciences (SPSS). The study found that one of important assumptions in decision making process and improvement of credit access is existence of quality information. According to the problems encountered in preparing financial statements in Ubaka SACCO, the study found that companies frequently have other demanding roles and responsibilities and believe that they can not do their submission of the report when they have a few spare moments. And, they often fail to find the time and continually postpone the delivery of their input – not always being aware of looming deadlines. Concerning the relationship between corporate disclosures and SACCOs access to credit, the researcher found that there is a positive relationship between corporate disclosures and access to credit of SACCOs. This study recommends that National Banks to speed up the sensitization campaign of the SACCOs to focus on corporate disclosure as among the tools to the access to credit.

Index Terms— Corporate disclosure, credit process, innovation, savings and credit cooperative organization, SACCO.

Habineza Jackson is with St Lawrence University, Uganda (e-mail: jackson.habineza44@gmail.com). Luyonga Hakim is with Kampala University, Kampala-Uganda. Habimana Theogene and Mukasafari Chantal are with Jomo Kenyatta University of Agriculture and Technology.

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Cite: Habineza Jackson, Luyonga Hakim, Habimana Theogene, and Mukasafari Chantal, " The Influence of Corporate Disclosure on Credit Process Innovation in Savings and Credit Cooperative Organizations," International Journal of Innovation, Management and Technology vol. 8, no. 5, pp. 页, 2017.

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