KANKPANG, Alphonsus Kechi
Department of Accounting, University of Calabar, Calabar
Email: drkechi@gmail.com,
NKIRI ,Joseph Enyam
Department of Accounting, University of Calabar, Calabar
joseph.nkiri@yahoo.com
MBU-OGAR ,Geraldine Banku
Department of Accounting, University of Calabar, Calabar
geraldineokafa@gmail.com
LAWAL, Suleiman Gbenga
Department of Banking and Finance, University of Calabar, Calabar.
Suleimanlawal24@gmail.com
ABSTRACT
This study explores the impact of credit management on the performance of listed industrial companies in
Nigeria. The study follows the quantitative research approach and focuses on the period from 2011 to 2021. The dataset is sourced from secondary sources, mainly from financial statements published on the Nigerian
Exchange Group website. The study utilizes the simple least square regression method and considers four
explanatory variables: namely, credit debt collection, debt ratio, gearing ratio, and cashflow. The findings
indicate that credit debt collection, debt ratio, and gearing all exert a highly significant positive impact on firm
profitability, while the impact of cashflow on firm profitability is negative but negligible. The study concludes
that credit management is an important driver of firm profitability and hence plays critical role in financial
performance of a firm. The study recommends that companies should implement strong credit management
procedures to improve their profitability.
Keywords: Credit management, performance, manufacturing companies, profit margins,
liquidity