Abstract:
The study examined the influence of the supervisory committee on the financial
performance of SACCOS in Ruvuma. Three objectives guided the study: to
determine the effect of gender diversity on financial performance, to determine the
effect of age diversity on financial performance and to determine the effect of
educational level on financial performance. The study was guided by Agency
theory, Stakeholders theory and Stewardship theory to lay a foundation for the
examination of the relationship between these variables. The positivist and
interpretivism research philosophy was used in this study. Moreover, this study
employed a quantitative cross-sectional research approach. The research design used
in this study is explanatory. Purposive sampling was used to extract 44 sample size
from a population of 62 SACCOS registered in Ruvuma region in which 132
observations were scrutinized. The financial reports were used to extract secondary
data for this study. The data were analyzed using combination of Descriptive
statistics, correlation and multiple regression which were produced by the statistical
software STATA. The study found that all independent variables; Age diversity and
Educational level of members were found to be positive and significantly related to
the dependent financial performance (ROA). However, the independent variable:
Gender diversity was found statistically insignificant. Based on the findings it is
recommended that a balanced age diversity in the compaosition of supervisory
committee members do enhances influences and improves financial performance as
such SACCOS in Ruvuma should employ a more balanced age diversity to imrove
their influences and financial performance. Secondly, including more educated
members in the supervisory committee shows an increase in the influences of the
committee and improves the financial performance. Hence, the SACCOS in Ruvuma
is recommended to include more skilled members in their supervisory body to
improve their financial performance. Lastly, further studies should explore a
longitudinal study of demographic characteristics of supervisory and governing
bodies for a longer period of time, complementing with a qualitative technique to
understand the long-term effect of these variables on financial performance.
