Credit Management Strategies and Financial Performance of Industrial Goods Sector in Nigeria

Abstract

The influence of credit management methods on the liquidity and profitability of listed industrial goods firms in Nigeria was investigated in this study. It was decided to use a descriptive survey study design. The sample population for which copies of the questionnaire were distributed was 400 respondents, representing 65% of the population. The participants provided 355 valid responses, which were examined. For descriptive statistics, one-way ANOVA was utilized, and to test the hypotheses, a basic regression analysis method was applied. The results showed that the credit risk assessment, debt recovery strategy, and receivable collection policy sub-variables have a positive and statistically significant impact on the liquidity sub-variables - ability to pay, level of bad debt, and cash inflow. Liquidity had a positive and statistically significant effect on profitability. The study thus, suggest that companies in the industry should enhance their liquidity in order to achieve the targeted profit level by having effective credit terms and proper risk assessment strategy, designing and implementing debt recovery plans to aid collection of the overdue debt, adopting a stringent credit collection method, and employing and retained qualified accountants and credit administrators with excellent knowledge of credit control techniques.

Mobile Money Use, Digital Banking Services and Velocity of Money in Ghana

“…As digital payments have continued to advance in China over the past few years, an increasing number of academics have begun to investigate the connection between digital payments and currency circulation. Alhassan and Islam (2021) discovered a positive and long-lasting relationship between the velocity of money circulation and third-party payment growth rate by constructing a co-integration model between the two variables. In their study, Maulayati and Herianingrum (2020) employ the co-integration model, Granger causality test, and impulse response function in the VAR model to examine the relationship between third-party internet payment and the acceleration of money circulation at all levels.…”