Impact Of Credit Management On The Profitability Of Manufacturing Firms In Nigeria (A Study Of Star Paper Mill Ltd And Glass Industry, Aba)

ABSTRACT

 The focus of this research project is the Impact of credit management on the profitability of manufacturing firms in Nigeria. A review of related literature was extensively made in Chapter Two of the work to cover the relevant aspects of the topic. In this regard, the empirical studies carried out by other researchers were assembled to comprehensively address this issue. The population sample size of the study is 220, which is fully representative of the research population. The instruments used in data collection for the purpose of this study comprised the following: the questionnaire, personal interview, observations, textbooks, seminar papers, articles and the internet. Two of the findings made from the study are stated thus: (1) A firm's credit policy has a significant effect on its profitability. (2)The expansion of trade credit has a significant effect on the firm's liquidity position. In addition, two of the recommendations advanced for the purpose of improving the operational performance of manufacturing firms through credit management are: (1) Sound financial managers should be engaged by manufacturing firms to ensure proper management of their credit sales. (2) The average collection period of debts should not be more than the industry set standard.