Liquidity Creation, Bank Capital Structure and Bank Performance in China

Lei, Adrian C. H.; Song, Zhuoyun

doi:10.2139/ssrn.2138712

Cited by 1 publication

(2 citation statements)

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“…A study which was done by Kljelly (2004) argued that payments by debtors is the most important factor affecting a firm's liquidity. Lei and Song (2013) carried out a research on firms in China and found that, non-payment or late payment by debtors inhibits cash flows and leaves the firm with outstanding debts, this could result in debtors imposing penalties or refusing goods or services which directly inhibit servicing customers less than half of all enterprises, perform any form of check on a firm before granting credit (Raeisi et al, 2014).…”

Section: Debtors' Approvalmentioning

confidence: 99%

“…Non-payment or late payment by debtors inhibits cash flows and leaves the firm with outstanding debts in China. This in turn will interfere with the financial performance of the firm (Lei &Song, 2013) and could result in debtors imposing penalties or refusing goods or services which directly inhibit servicing customers less than half of all enterprises perform any form of check on a company before granting credit to them (Lei & Song, 2013).…”

Section: Introductionmentioning

confidence: 99%

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The Effect of Debtors' Approval on Financial Performance of Manufacturing Firms in Kenya

Cheptum

2019

AJF

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Purpose: The main objective of this study is to establish the effect of debtors’ approval on the financial performance of manufacturing firms in Kenya. Manufacturing firms have been experiencing a number of challenges in their application of debtors’ approval to ensure sound financial performance.Methodology: The study adopted two research designs; descriptive and causal. The accessible population for the study was 558 registered manufacturing firms. Stratified sampling technique was used to select the sample size and a sample of 233 manufacturing firms was arrived at using Yamane’s formula. Questionnaires were the main instruments used to collect primary data. Both descriptive and inferential statistics were utilized in data analysis with the aid of SPSS. Data presentation methods used included frequency tables and percentages. Data collected were tested using, univariate test to provide an insight using both parametric (F-test) and non-parametric test (Pearson correlation coefficient). Multivariate analysis was also carried using the multiple regression analysis which indicated the level of the relationship that existed between the independent variables and the dependent variable.Results: Findings indicate that the credit collection practices have a significant positive effect on the financial performance of the manufacturing firms (p<0.05). This can be attributed to the fact that owners of manufacturing firms have the ability to control and manage credit through their experienced and skilled credit managers. In conclusion, credit collection practices positively and significantly affected the financial performance of the firms.Unique contribution to Theory, Practice and Policy: The study recommends that registered manufacturing firms operating in Kenya should adopt debtors’ approval since it positively and significantly affects the financial performance.

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Section: Debtors' Approvalmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%