Determinants of voluntary disclosure practices in the annual reports of savings and credit cooperatives in Kenya

Abstract

Prior studies have investigated the determinants of discretionary disclosure in a number of organisations. However, very few studies have investigated the determinants of discretionary disclosure by cooperatives in a developing country. This study investigates the determinants of voluntary disclosure practices by savings and credit cooperatives (SACCOs) in Kenya, a developing country with a vibrant credit union sector. Using a sample of 212 deposit-taking SACCOs in Kenya over a six-year period between 2008 and 2013, the study finds that voluntary disclosure practices in SACCOs are largely shaped by governance, asset quality, proprietary and regulatory forces. The study provides important implications on the need for SACCOs to improve voluntary disclosures in a developing country context.