IDEAS home Printed from https://ideas.repec.org/a/dug/actaec/y2019i2p445-456.html
   My bibliography  Save this article

Credit Management and Profitability Growth in Nigerian Manufacturing Firms

Author

Listed:
  • Gideon Tayo Akinleye

    (Ekiti State University)

  • Olusola Olawale Olarewaju

    (Ekiti State University)

Abstract

Aim: This study aims to examine the effect of credit management on the profitability growth of manufacturing firms in Nigeria from 2007 to 2016. Methodology: Panel data regression technique was used. Result: the study reveals that cash conversion cycle and collection period were positively related with the manufacturing firms growth and a negative relationship was discovered between the payment period. Also, the manufacturing firms’ growth credit management positively influenced the growth of Dangote Cement Plc, Guinness Nigeria Plc and Nestle Plc while, the adopted credit management hindered the growth of Cadbury Plc and Leventis Plc. Conclusion: The study concludes that the non-compliance of the manufacturing firms to credit management had hampered their growth and sustainability; the cash conversion cycle had great influence thereby enhanced the growth of manufacturing firms in Nigeria. Recommendation: The study recommends that manufacturing firms should establish and continuously update their credit policies that clearly outlined the management’s view of the organization growth priorities; the manufacturing firms should engaged competent and qualified personnel in other to ensure optimal decision and enshrined strict adherence to collection and payment period.

Suggested Citation

  • Gideon Tayo Akinleye & Olusola Olawale Olarewaju, 2019. "Credit Management and Profitability Growth in Nigerian Manufacturing Firms," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 15(2), pages 445-456, APRIL.
    • Handle: RePEc:dug:actaec:y:2019:i:2:p:445-456
    as

    Download full text from publisher

    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/5281/4891
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:actaec:y:2019:i:2:p:445-456. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniela Robu (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.