Abstract:
This paper examines the impact of board characteristics—such as size, gender diversity, skills,
and meeting frequency—on the financial performance of SACCOSs in Tanzania. The study
focused on three financial performance indicators: net loan income, operating efficiency ratio,
and deposit-to-asset ratio. Descriptive statistics and linear regression models were used to
analyse panel data collected from financial reports of 198 SACCOSs for five years (2014–
2018). The results show a positive and significant relationship between financially-skilled
board member(s) and the depositto-asset ratio; conversely, they were negatively associated
with the operating efficiency ratio. The results further show that board meetings are positively
and significantly related to net loan income, whereas board size is positively associated with
the operating efficiency ratio. Moreover, the paper found no evidence of a relationship between
women’s board members and financial performance. Impliedly, having financially-skilled
directors on a board and regular board meetings facilitated financial performance in a
SACCOS. Thus, the paper calls for board members to have financial skills, and boards to
conduct regular meetings for constructive advice and effective monitoring to boost financial
performance.