THE EFFECT OF CREDIT COLLECTION PRACTICES ON FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS IN KENYA
DOI:
https://doi.org/10.47604/ijfa.873Abstract views: 829
PDF downloads: 2798
Keywords:
Financial Performance, Credit Collection Practices, Manufacturing Firms and Debt RecoveryAbstract
Purpose: The main objective of this study is to establish the effect of credit collection practices on the financial performance of manufacturing firms in Kenya. Manufacturing firms have been experiencing a number of challenges in their application of credit collection practices 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 credit collection practices since it positively and significantly affects the financial performance. This can be achieved by setting techniques which are used to collect credit and this helps in reducing chances of credit defaults.
Downloads
Download data is not yet available.
References
Abbas, N. (2015). Use of Lean Accounting Techniques to Support Lean Production Systems and Evaluate the Performance of Economic Units. Journal for Economic and Administrative Development Science, 2(6), 23-43.
Acharya, V. V., & Nagvi, H. (2012). The Seeds of a Crisis. A theory of Bank- Liquidity and Risk- Taking Over the Business Cycle in Ghana. Journal of Financial Economics, 106(2), 349- 366.
Acharya, V., & Nagvi, H. (2012). The Seeds of a Crisis: A Theory of Bank-Liquidity and Risk -Taking Over the Business Cycle in Ghana. Journal of Financial Economics, 2(106), 349-366.
Adam, K., & Albert, M. (2010). Booms and Busts in Asset Prices (8 ed.). New York: Prentice Hall.
Admati, A., Peter, M. D., Martin, R. H., & Paul, P. (2011). Fallacies, Irrelevant Facts and Myths in the Discussion of Capital Regulation. Why Bank Equities is not Expensive? Stanford Graduate School of Business Research Paper, 2065(10), 20-31.
Ahmed, N., Zeng, M., Sinha, I., Flavell, R., & Massoumi, R. (2011). An Empirical Analysis of Remittances, Growth Nexus in Pakistan using Bounds Testing Approach. Academic Journal, 52(2), 187-196.
Akerlof, G. A. (1970). The Market for Lemons. Quality Uncertainty and the Market Mechanism. Journal of Economics, 488(10), 25- 32.
Akerlof, G. A. (1976). The Market for Lemons. Quality Uncertainty and the Market Mechanism. Journal of Economics, 12(22), 12- 23.
Akerlof, G. A. (1982). The Market for Lemons. Quality Uncertainty and the Market Mechanism. International Journal of Economics, 6(3), 34- 42.
Alchian, A., & Woodward, S. (1988). The Firm is dead, Long Live the Firm. A Review of Oliver E. Williamson. The Econmic Institutions of Capitalism. Journal of Economic Literature, 26(1), 165- 179.
Altunbas, Y. L., & David, M. (2010). Does Monetary Policy Affect Bank Risk Taking? Journal of Economics and Business, 1166(10), 35- 53.
Ameels, A. B., & Scheipers, G. (2012). Value Based Management Control Process to Create Value through Integration. International Journal of Management Accounting, 18(1), 64-82.
Angaine, F., & Waari, D. N. (2014). Factors Influencing Loan Repayment in Microfinance Institutions in Kenya. Journal of Business and Management, 16(9), 66-72.
Arnold, G. (2003). Corporate Financial Management (2 ed.). New Jersesy: Prentice Hall.
Arnold, G. (2005). Corporate Financial Management (3 ed.). Bath: Prentice Hall.
Aubuchon, C. P., & Wheelock, D. C. (2010). The Geographic Distribution and Characteristic of US Bank Failures, 2007- 2010. Do Bank Failures Still Reflect Local Economic Conditions? Federal Reserve Bank of St. Louis Review, 92(5), 395- 415.
Beltratti, A., & Rene, M. S. (2012). The Credit Crisis Around the Globe. Why Did Some Banks Some Banks Perform Better? Journal of Financial Economics, 105(1), 1- 17.
Bessis, J. (2013). Risk Management on the Financial Performance of Commercial Banks in Kenya. DBA Africa Management Review, 3(1), 22- 37.
Bond, E. W. (1982). A Direct Test of the Lemons Model. The Market for Used Pickup Trucks. 72 AM Economic Review, 836(15), 836- 837.
Bowman, G. W. (2010). Thinking Outside the Border. Homeland Security and Forward Deployment of the US Border. 44 Hous. L. Review, 189(1), 196- 197.
Brunnermeier, M. K., & Martin, O. (2013). The Maturity Rat Race of Egyptian Firms. Journal of Finance, 68(2), 83- 97.
Bryman, A., & Cramer, D. (2012). Quantitative Data Analysis with SPSS for Windows (5 ed.). Routledge, London, United Kingdom: Prentice Hall.
Burkat, M., & Ellingsen, T. (2004). In- Kind Finance. A theory of Trade Credit. American Economic Review, 94(3), 569- 590.
Burkat, M., & Ellingsen, T. (2012). In- Kind Finance. A theory of Trade Credit. American Economic Review, 2(10), 52- 61.
Burns, E. A., Duffet, M., Kho, P. T., Meade, O. M., Adhikari, K. J., Sinuff, D., & Cook, J. D. (2008). A Guide for the Design and Conduct of Self-Administered Surveys of Clinicians. Canadian Medical Association Journal, 179(3), 245-252.
Cadsby, C. B., Frank, M., & Maksimovic, V. (1990). Pooling, Separation and Semi Separating Equilibria in Financial Markets. Some Experimental Evidence. Review of Financial Stusies, 3(5), 315- 342.
Central, B. K. (2011). Risk Management Survey for Banking Sector. Nairobi: CBK.
Charles, W. T. (2009). How to Improve Collection of Credit. International Journal of Finance, 15(8), 35- 47.
Chen, K., & Pan, C. (2012). An Empirical Study of Credit Risk Efficiency of Banking Industry in Taiwan. Web Journal of Chinese Management Review, 15(1), 1- 16.
Cheptum, F. J., & Otuya, R. I. (2016). The Relationship between Employee Relations and Performance of Supermarkets in Kenya. Global Journal of Advanced Research, 3(11), 1023-1030.
Cheruiyot, F. K. (2010). The Relationship Between Corporate Social Responsibility and Financial Performance of Companies Listed at the Nairobi Stocks Exchange. Journal of Management and Finance, 5(3), 12- 20.
Chijoriga, M. M. (2007). Application of Credit Scoring and Financial Distress Prediction Models to Commercial Banks Lending (2nd ed.). London: Sage.
Chittenden, F., Poutziouris, P., & Michaels, N. (1988). Financial Management and Working Capital Prices in UK SMEs, Manchester. Manchester Business School, 6(3), 235- 240.
Cho, H., & Pucik, V. (2005). Relationship Between Innovativeness, Quality, Growth, Profitability and Market Value. Strategic Management Journal, 26(6), 555- 575.
Denzil, N. K. (2010). The Sage Handbook of Qualitative Research (1st ed.). Carlifonia, USA: Sage Publications.
Deyoung, R., & Gokhan, T. (2013). Non- Traditional Banking Activities and Bank Failures During the Financial Crisis. Journal of Financial Intermediation, 12(10), 342- 354.
Dignam, A., & Galanis, M. (2008). Corporate Governance and the Importance of Macroeconomic Context. Journal of Financial Economics, 28(3), 201- 213.
Dignam, A., & Galanis, M. (2012). Corporate Governance and the Importance of Macroeconomic Context. Journal of Economics, 4(6), 19- 36.
Dobson, P. (2012). Critical Realism and Information Systems Research. Why Bother with Philosophy? Information Research, 7(2), 23- 35.
Dogan, M. (2013). Comparison of Financial Performance of Domestic and Foreign Banks. The Case of Turkey. International Journal of Business and Social Sciences, 4(2), 233- 240.
Eckbo, B. E., & Norli, O. (2004). The Choice of Seasoned Equity Selling Mechanisms. Theory and Evidence. International Journal of Science and Management, 5(3), 8- 19.
Edem, D. (2017). Liquidity Management and Performance of Deposit Taking Banks in Nigeria; An Investigation. International Journal of Economics, Finance and Management Sciences, 5(3), 146-161.
Ejoh, N. O., & Sackey, J. A. (2014). The Impact of Market Share on Deposit Money Banks Profitability in Nigeria. European Journal of Business and Management, 6(19), 243- 257.
Ejoh, N., Okpa, I., & Inyanga, E. (2014). The Relationship and Effect of Credit and Liquidity Risk on Bank Default Risk among Deposit Money Banks in Nigeria. Research Journal of Accounting and Finance, 5(16), 14- 151.
Eljelly, A. M. (2004). Liquidity- Profitability Trade- off. An Empirical Investigation in an Emerging Market. International Journal of Commercial and Management, 14(2), 48- 61.
Evans, M., Hastings, N., & Peacock, B. (2000). Statistical Distribution (3 ed.). New York, New York, United States of America: Wiley.
Fan, L., & Shaffer, S. (2004). Efficiency versus Risk in Large Domestic US Banks. Journal of Managerial Finance, 30(1), 1- 19.
Garmaise, M. J., & Moskowitz, T. J. (2015). Confronting Information Asymmetries. Evidence from Real Estate Market. Center for Research in Security Markets, 507(5), 45- 63.
Ghoshal, S., & Moran, P. (1996). Bad for Practice. A Critique of the Transaction Cost Theory. Academy of Management Review, 21(1), 13- 47.
Giannetti, M. (2015). Do Better Institutions Mitigate Agency Problems? Evidence from Corporate Finance Choices. Journal of Financial and Quantitative Analysis, 38(1), 185- 212.
Gichaaga, P. M. (2014). Effects of Management Accounting Practices on Financial Performance of Manufacturing Companies in Kenya. Journal of Financial Economics and Accounting, 4(11), 13-22.
Ginevicius, R., & Askoldas, P. (2011). A Framework of Evaluation of Commercial Banks. In the Case of Lithuanian Commercial Banks. Intellectual Economics, 5(37), 54- 68.
Gisemba, P. N. (2010). The Relationship between Credit Risk Management Practices and Financial Performance of SACCOs in Kenya. International Journal of Finance and Management, 6(4), 52- 68.
Gitau, R., & Gathiaga, J. (2017). The Moderating Effect of Firm Size on the Relationship between Capital Structure and Financial Dsitress of Non-Financial Companies Listed in Kenya. Journal of Finance and Accounting, 5(4), 151-158.
Glick, W. H., Washburn, N. T., & Miller, C. C. (2005). The Myth of Firm Performance. American Academy of Management, 12(3), 15- 32.
Gorton, G., & Metrick, A. (2009). Securitized Banking and the Run on Repo. Academy of Management Review, 140(3), 68- 79.
Graeber, D. R. (2015). Debt in the First 5000 Years (4 ed.). Brooklyn, New York, United States of America: Melville House.
Gramedia, A. (2012). Effect of Credit Default on Financial Performance of Manufacturing Firms. International Journal of Management, 3(6), 237-252.
Granovetter, M. (1985). Economic Action and Social Structure. The Peoblem of Embeddedness. American Journal of Sociology, 3(1), 481- 510.
Gujarati, D. N., & Sangeetha, S. (2007). Basic Econometrics (4 ed.). New Delhi, New Delhi, India: McGraw Hill Education Books.
Hair, J. F., Black, B., Babin, B., Anderson, R. E., & Tatham, R. L. (2006). Multivariate Data Analysis (6th ed.). Harlow, England: Pearson Education.
Hall, J. A. (2011). Accounting Information System (2nd ed.). Mason: Mason Centage Learning Publishers.
Halov, N., & Heider, F. (2004). Capital Structure, Risk and Asymmetric Information. Journal of Finance, 16(5), 82- 98.
Harris, M., & Raviv, A. (1991). The Theory of Capital Structure. Journal of Finance, 46(5), 297- 356.
Heal, G. (1976). Do Bad Products Drive Out Good? Quantitative Journal of Economics, 499(1), 500- 501.
Hendel, I., & Lizzeri, A. (1999). Adverse Selection in Durable Goods Markets. AM Economic Review, 89(3), 1097- 1099.
Hermann, A. M. (2008). Choosing and Successfully Sustaining Competitive Strategies in The European Pharmaceutical Industry. Max Planck Institute for The Study of Societies Cologne, 12(5), 15- 32.
Hgokcehan, D., & Waseem, A. (2014). Factors Affecting the Financial Performance of the Firms During the Financial Crisis. Evidence from Turkey. Ege Strategic Research Journal, 5(1), 65- 80.
Howorth, C., & Reber, B. (2003). Habitual Late Payment of Trade Credit. An Empirical Examination of UK Small Firms. Managerial and Decision Economics, 24(6), 471- 482.
Huber, J. (2014). The Case for Sovereign Money. American Journal of Economics and Finance, 17(5), 23- 34.
Hudon, M. (2010). Management of Microfinance Institutions. Do Subsidies Matter? Journal of Interventional Development, 905(1), 890- 905.
Iacoviello, M. (2015). Financial Business Cycles. Review of Economic Dynamics, 18(1), 140- 164.
Ifurueze, M. S. (2013). Determinants of Financial Performance. Global Journal of Management and Business Research, 13(2), 2249- 2288.
Jackling, B., Raar, J., Wigg, R., Williams, B., & Wines, G. (2004). Accounting. A Framework for Decision Making (6 ed.). Sydney, Sydney, Australia: McGraw Hill.
Jackson, P., Perraudin, W., & Saporta, V. (2012). Regulatory and Economic Solvency for Internationally Active Banks. Wiley Journal, 161(2), 53- 66.
Jain, N. (2014). Monitoring Costs and Trade Credit. Quarterly Review of Economics and Finance, 41(1), 89- 110.
Kagoyire, A., & Shukla, J. (2016). Effects of Credit Management on Performance of Commercial Banks in Rwanda. A Case Study of Equity Bank Rwanda. International Journal of Business and Management Review, 4(4), 1- 12.
Kalunda, E. N., & Kabiru, J. (2012). Pharmaceutical Manufacturing Companies in Kenya and Their Credit Risk Management Practices. Research Journal of Finance and Accounting, 3(5), 159- 167.
KAM. (2016). Kenya Association of Manufactures Annual Report. Nairobi: KAM.
Kaplan, S. N., & Bernadette, A. M. (2008). How Has CEO Turnover Changed? University of Chicago Booth School of Business. Wiley Journal, 25(3), 10- 16.
Kargi, H. S. (2011). Credit Risk and Performance of Nigerian Banks (5 ed.). Lagos, Zaria, Nigeria: Ahmadub Bello University.
Kariuki, J. N. (2010). Effective Collection Policy (1 ed.). Nairobi, Nairobi, Kenya: KASNEB Publishers.
Kateera, C. (2009). Microfinance Intervention, Entrepreneurial Skills and Rural Poverty Reduction. A Case of MFI's Performance in Mubende and Wakiso Districts. Makerere University Journal, 5(12), 12- 32.
Katz, A. (2007). Pharmaceutical Lemons. Innovation and Regulation in the Drug Industry. Mich Telecommunications and Technological Review, 14(1), 32- 51.
Katz, A. (2015). Pharmaceutical Lemons. Innovation and Regulation in the Drug Industry. Mich Telecommunications and Technological Review, 14(1), 32- 51
Kilonzo, J. M., Memba, S. F., & Njeru, A. (2016). Effects of Accounts Receivable on Financial Performance of Firms Funded by Government Venture in Kenya. Journal of Economics and Finance, 7(1), 62- 69.
Kithinji, A. M. (2010). Credit Risk Management and Profitability of Commercial Banks in Kenya (1 ed.). Nairobi, Nairobi, Kenya: University of Nairobi.
Kljelly, M. A. (2004). Liquidity Profitability Trade Off. An Empirical Investigation in an Emerging Market. International Journal of Commerce and Management Indiana, 14(2), 48- 61.
KNBS. (2016). Kenya National Bureau of Statistics Economic Survey. Nairobi: KNBS.
Kubo, I., & Saka, A. (2002). An Inquiry into the Motivations of Knowledge Workers in the Japanese Financial Industry. Journal of Knowledge Management, 6(3), 262- 271.
Lei, A. C., & Song, Z. (2013). Liquidity Creation, Bank Capital and Bank Performance in China. Global Finance Journal, 24(3), 188- 202.
Long, M. S., & Ravid, S. A. (2016). Trade Credit, Quality Guarantees and Product Marketability. Financial Management Journal, 22(4), 17- 27.
Lown, C. S., & Morgan, D. P. (2006). The Credit Cycle and the Business Cycle. New Findings Using the Loan Officer Opinion Survey. Journal of Money, Credit and Banking, 38(6), 1575- 1597.
Ludwig, S. M. (2000). Accounts Payable. A Guide to Running an Efficient Department Somerset (2 ed.). New York, New York, United States of America: John Wiley and Sons Inc.
Mahour, M. P., & Elham, H. F. (2010). The Effects of Productivity and Quality on Profitability in US Airline Industry. An Empirical Investigation. Managing Service and Quality. An International Journal, 20(5), 458- 474.
Maina, J. M. (2011). Relationship Between Credit Risk Management Practices and Financial Performance of Microfinance Institutions in Kenya. International Journal of Financial Management, 4(6), 32- 43.
Makori, J., Muturi, W., & Munene, C. (2013). The Challenges Facing Deposit- Taking Savings and Credit Cooperative Societies Regulatory Compliance in Kenya. A Case of Gusii Region. Interdisciplinary Journal of Contemporary Research in Business, 4(12), 54- 67.
Malik, M. F., Obiakor, R. T., & Okwa, A. T. (2011). Investigating Liquidity- Profitability Relationship in Business Organisations of the Tunisian Banking Industry Profitability. Financial Business Review, 2(3), 12- 21.
Mann, B., & Holdych, T. J. (2014). When Lemons are Better than Lemonade. The Case Against Mandatory Used Car Warranties. Yalel and Pol'y Review, 15(1), 143- 162.
Marotta, G. (2015). Is Trade Credit More Expensive than Bank Loans? Evidence from Italian Firm Level Data. Universita Di Modena e Reggio Emilia Review, 4(1), 12- 34.
Marsh, I. W. (2008). The Effects of Lenders' Credit Risk Transfer Activities on Borrowing Firm's Equity Returns. Cass Business School Review, London, 1(2), 24- 35.
Mendes, A., Gudoski, D. C., Cargnelutti, A. F., Silva, E. J., Carvairo, E. H., & Morello, G. M. (2014). Factors that Impact the Financial Performance of Broiler Production in Southern State Parana Brazil. Technological Federal University of Parana Review, 16(1), 32- 45.
Mian, A., & Sufi, A. (2009). The Consequences of Mortgage Credit Expansion. Evidence from US Mortgage Default Crisis. Quarterly Journal of Economics, 3(4), 11- 49.
Michael, E. R., Mumtaz, A., Derek, M. P., & Rop, D. V. (2015). A Theory of Relativity Setting Priorities and Goals for Financial Performance Improvement. Delloite Review, 17(10), 12- 23.
Miller, M. H. (1977). Dabt and Taxes. Journal of Finance, 32(1), 261- 276.
Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporate Finance and The Theory of Investment. American Economics Review, 48(5), 261- 297.
Mungai, J. N., Maingi, J., & Muathe, S. M. (2015). Loan Repayment and Sustainability of Government Funded Micro- Credit Initiatives in Murang’a County, Kenya. International Journal of Business and Social Science, 10(1), 11-23.
Munir, S., Muhammed, R., Rao, Q., Muhammad, A., & Ali, R. (2012). Financial Performance Assessment of Banks. A Case of Pakistan Public Sector Banks. International Journal of Business and Social Sciences, 3(14), 134- 155.
Mwangi, P. G., & Muriuki, M. M. (2013). Credit Risk Management Practices by Oil Companies in Kenya. International Journal of Business, Humanities and Technology, 3(2), 72- 80.
Myers, C. S. (2003). Principles of Corporate Finance (1 ed.). New York, New York, United States of America: McGraw Hill.
Myers, J. (2012). Assessing the Cost of Fractional Reserve Banking. A Theoretical Exposition and Examination of Post- Meiji Japan (2 ed.). Columbia, Columbia, United States of America: QMSS Columbia University.
Myers, S. C. (2015). The Capital Structure Puzle. Journal of Finance, 39(1), 575- 592.
Naser, K., & Mokhtar, M. Z. (2004). Firm Performance, Macro- Economic Variables and Firm Size. Journal of Finance, 4(5), 543- 579.
Nassiuma, D. K. (2000). Survey Sampling. Theory and Methods (1 ed.). Nairobi, Nairobi, Kenya: University of Nairobi Press.
Nilsen, J. H. (2002). Trade Credit and the Bank Lending Channel. Journal of Money, Credit and Banking, 34(1), 226- 253.
Nilsen, J. H. (2009). Trade Credit and the Bank Lending Channel. Journal of Monetary Management, 12(5), 78- 92.
Nilsen, J. H. (2016). Trade Credit and the Bank Lending Channel. Journal of Developmkent, 5(6), 14- 26.
Njoroge, I. (2015). Effects of Liquidity Management on the Security Market Performance of Companies Listed at the NSE. IOSR Journal of Applied Physics, 6(6), 58-61.
Noe, T. (1988). Capital Structure and Signalling Game Equilibria. Review of Financial Studies, 1(7), 321- 355.
NSE. (2017). Nairobi Securities Exchange Annual Report. Nairobi: NSE.
Nyabwanga, R. N. (2013). An Empirical Analysis of the Liquidity, Solvency and Financial Health of Small and Medium Sized Enterprises in Kisii Municipality, Kenya. Journal of Business and Management, 5(8), 222- 283.
Odhiambo, M., & Waiganjo, E. (2014). Role of Human Capital Management Strategies on Employee Mobility in Kenya's Public Universities. International Journal of Business and Social Science, 5(6), 185-189.
Ojeka, S. A. (2012). Credit Policy and Its Effects on Liquidity. A Study of Selected Manufacturing Companies in Nigeria. The Journal of Commerce, 3(3), 10- 19.
Ojilo, F. (2012). The Impact of Credit Risk Management on the Financial Performance of Commercial Banks in Kenya. DBA Africa Management Review, 3(1), 22- 37.
Olweny, T., Namusonge, G., & Onyango, S. (2012). The Influence of Socio- Cultural Background on Individual Investor Risk Tolerance at Nairobi Securities Exchange. International Journal of Arts and Commerce, 1(4), 87-106.
Ongore, V. O., & Kusa, G. B. (2013). Determinants of Financial Performance of Commercial Banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237- 252.
Oyadonghan, K. J., & Bingilar, P. F. (2014). The Impact of Effective Credit Policy on Liquidity of Manufacturing Companies in Nigeria. European Journal of Accounting, Auditing and Finance, 2(7), 88- 100.
Pandey, I. M. (2011). Financial Management (9th ed.). New Delhi, New Delhi, India: Vikas Publishing House.
Peacock, R., Martin, P., Burrow, M., Petty, J. W., Keown, A. J., & J, R. (2003). Financial Management (3th ed.). Beijing, Beijing, China: Prentice Hall.
Raeisi, M., Gavara, M., & Dnarehzershk, I. A. (2014). Bank Liquidity and its Determinants in Iran. International Journal of Management Sciences and Economics, 1(5), 30- 36.
Rajan, R. G. (2010). Fault Lines (2nd ed.). New York, New York, United States of America: Princeton University Press.
Rajangam, P., & Solavaraj, V. (2015). Evaluating the Financial Health of West Coast Paper Mills Limited Using z Score Model. Primax International Journal of Commerce and Management Research, 1(1), 1- 12.
Ramond , A., Ezejiofor, P., Adigwe, P. K., & John, A. R. (2012). The Credit Management on Liquidity and Profitability Positions of a Manufacturing Company in Nigeria. The Journal of Commerce, 3(5), 10- 19.
Reddy, N., & Reddy, V. (2012). Financial Status of Selected Sugar Manufacturing Firms. International Journal of Marketing, Financial Services and Management Research, 1(4), 64- 79.
Reeve, J. M., & Warren, C. (2018). Principles of Accounting and Finance (2nd ed.). Jakarta, Indonesia: Salemba Empat.
Remenyi, D., Williams, B., Money, A., & Swartz, E. (1998). Doing Research in Business and Management. An Introduction to Process and Method (1st ed.). London, Britain, United Kingdom: Sage.
Schwartz, R., & Whitcomb, D. (1978). Implicit Transfers in the Extension of Trade Credit. The Channels of Redistribution Through the Financial System, 2(14), 191- 208.
Sekaran, U., & Bougie, R. (2011). Research Methods for Business. A Skill Building Approach (5th ed.). New Delhi, New Delhi, India: Aggarwal Printing Press.
Shleifer, A., & Vishny, W. R. (2010). Unstable Banking. Journal of Financial Economics, 97(3), 306- 318.
Siro, R. O. (2013). Effects of Capital Structure on the Financial Performance of Firms Lited in Nairobi Securities Exchange. Journal of Economics and Financial Management, 4(7), 52- 65.
Suka, J. N. (2012). The Impact of Capital Adequacy on the Financial Performance of Commercial Banks Quoted at the Nairobi Securities Exchange. Journal of Finance, Money and Bank, 4(5), 12- 26.
Sunarti, W. (2008). System Management (1st ed.). Malang, Perbankan, Indonesia: NN Press.
Swamy, V. (2014). Banking Stability for Financial Stability. Journal of Financial Economics, 115(2), 15- 26.
Taylor, J. (2010). Globalization and Monetary Policy. Missions Accomplished in University of Chicago. International Dimensions of Monetary Policy, 21(12), 609- 624.
Thirlwall, A. P. (2017). Monetarism in Post Depssion Crisis. Encyclopaedia of Political Economy, 21(6), 750- 753.
Tucker, M., & Miles, G. (2004). Financial Performance of Microfinance Institutions. A Comparison to Performance of Regional Commercial Banks by Geographical Regions. Journal of Microfinance Review, 6(1), 41- 54.
Turyahebwa, A. (2013). Financial Performance in the Selected Microfinance Institutions in Uganda. International Journal of Commerce and Management, 2(5), 43- 53.
Upagade, V., & Shende, A. (2012). Research Methodology (2 ed.). New Delhi, Ram Nagar: Chad and Company Limited.
Vodova, P. (2011). Liquidity of Czech Commercial Banks and its Determinants. International Journal of Mathematical Models and Methods in Applied Sciences, 6(4), 1060- 1067.
Wei, K., & Zhang, Y. (2008). Ownership Structure, Cash Flow and Capital Investment. Evidence from East Asian Economies Before the Financial Crisis. Journal of Corporate Finance, 14(2), 118- 132.
Were, A. (2016). Manufacturing in Kenya. Features, Challenges and Opportunities. International Journal of Science, Management and Engineering, 4(6), 15-26.
Werner, R. (1997). Towards a New Monetary Paradigm. A Quantity Theorem of Disaggregated Credit. Evidence from Japan Review, 30(1), 276- 309.
Werner, R. (2009). Applying the Quantity Theory of Credit (1st ed.). New York, New York, United States of America: Free Press.
Werner, R. (2012). Towards a New Research Programme on Banking and the Economy Implications of a Quantity Equation Model for the Prevention and Resolution of Banking and Debt Crises. International Review of Financial Analysis, 25(5), 94- 105.
Werner, R. (2015). Applying the Quantity Theory of Credit (2nd ed.). New York, New York, United States of America: Free Press.
Werner, R. A. (1992). Towards a Quantity Theorem of Disaggregated Credit and International Capital Flows. Royal Economic Society Annual Conference (pp. 1- 15). York: York Publishers.
White, H., & Graffith, B. (1981). Author Co- Citation. A Literature Measure of Intellectual Structure. Journal of the American Society for Information Science, 32(13), 163- 171.
Wijaya, K. (2010). Analysis of Indonesian Firms. Alex Media Journals, 6(4), 18-37.
Williamson, O. (1975). Markets and Hierarchies Analysis and Antitrust Implications. A Study in the Economics of Internal Organization (2nd ed.). New York, New York, United States of America: Free Press.
Williamson, O. (1979). Transaction Cost Economics. The Governance of Contractual Obligations. Journal of Law and Economics, 22(2), 233- 261.
Williamson, O. (1981). The Economics of Organisation. The Transaction Cost Approach. American Journal of Sociology, 87(3), 548- 577.
Williamson, O. (1985). The Economic Institutions of Capitalism. Firms, Markets and Relational Contracting. Journal of Law and Economics, 46(3), 548- 601.
Wilner, B. S. (2016). The Exploitation of Relationships in Financial Distress. The Case of Trade Credit. Journal of Finance, 55(1), 153- 178.
Wray, R. (2004). The Credit Money and State Money Approaches. University of Missouri- Kansas Paper Review, 3(2), 52- 63.
Yamane, T. (1967). Statistics, an Introductory Analysis (2nd ed.). New York, New York, United States of America: Harper and Row Publishers.
Yasuda, H. (2005). Firm's Growth and Finance Strategy. Journal of Finance, 27(1), 30- 45.
Yilmaz, A. A. (2013). Profitability of Banking System. Evidence from Emerging Market. WEI International Academic Review, 12(6), 105- 111.
Acharya, V. V., & Nagvi, H. (2012). The Seeds of a Crisis. A theory of Bank- Liquidity and Risk- Taking Over the Business Cycle in Ghana. Journal of Financial Economics, 106(2), 349- 366.
Acharya, V., & Nagvi, H. (2012). The Seeds of a Crisis: A Theory of Bank-Liquidity and Risk -Taking Over the Business Cycle in Ghana. Journal of Financial Economics, 2(106), 349-366.
Adam, K., & Albert, M. (2010). Booms and Busts in Asset Prices (8 ed.). New York: Prentice Hall.
Admati, A., Peter, M. D., Martin, R. H., & Paul, P. (2011). Fallacies, Irrelevant Facts and Myths in the Discussion of Capital Regulation. Why Bank Equities is not Expensive? Stanford Graduate School of Business Research Paper, 2065(10), 20-31.
Ahmed, N., Zeng, M., Sinha, I., Flavell, R., & Massoumi, R. (2011). An Empirical Analysis of Remittances, Growth Nexus in Pakistan using Bounds Testing Approach. Academic Journal, 52(2), 187-196.
Akerlof, G. A. (1970). The Market for Lemons. Quality Uncertainty and the Market Mechanism. Journal of Economics, 488(10), 25- 32.
Akerlof, G. A. (1976). The Market for Lemons. Quality Uncertainty and the Market Mechanism. Journal of Economics, 12(22), 12- 23.
Akerlof, G. A. (1982). The Market for Lemons. Quality Uncertainty and the Market Mechanism. International Journal of Economics, 6(3), 34- 42.
Alchian, A., & Woodward, S. (1988). The Firm is dead, Long Live the Firm. A Review of Oliver E. Williamson. The Econmic Institutions of Capitalism. Journal of Economic Literature, 26(1), 165- 179.
Altunbas, Y. L., & David, M. (2010). Does Monetary Policy Affect Bank Risk Taking? Journal of Economics and Business, 1166(10), 35- 53.
Ameels, A. B., & Scheipers, G. (2012). Value Based Management Control Process to Create Value through Integration. International Journal of Management Accounting, 18(1), 64-82.
Angaine, F., & Waari, D. N. (2014). Factors Influencing Loan Repayment in Microfinance Institutions in Kenya. Journal of Business and Management, 16(9), 66-72.
Arnold, G. (2003). Corporate Financial Management (2 ed.). New Jersesy: Prentice Hall.
Arnold, G. (2005). Corporate Financial Management (3 ed.). Bath: Prentice Hall.
Aubuchon, C. P., & Wheelock, D. C. (2010). The Geographic Distribution and Characteristic of US Bank Failures, 2007- 2010. Do Bank Failures Still Reflect Local Economic Conditions? Federal Reserve Bank of St. Louis Review, 92(5), 395- 415.
Beltratti, A., & Rene, M. S. (2012). The Credit Crisis Around the Globe. Why Did Some Banks Some Banks Perform Better? Journal of Financial Economics, 105(1), 1- 17.
Bessis, J. (2013). Risk Management on the Financial Performance of Commercial Banks in Kenya. DBA Africa Management Review, 3(1), 22- 37.
Bond, E. W. (1982). A Direct Test of the Lemons Model. The Market for Used Pickup Trucks. 72 AM Economic Review, 836(15), 836- 837.
Bowman, G. W. (2010). Thinking Outside the Border. Homeland Security and Forward Deployment of the US Border. 44 Hous. L. Review, 189(1), 196- 197.
Brunnermeier, M. K., & Martin, O. (2013). The Maturity Rat Race of Egyptian Firms. Journal of Finance, 68(2), 83- 97.
Bryman, A., & Cramer, D. (2012). Quantitative Data Analysis with SPSS for Windows (5 ed.). Routledge, London, United Kingdom: Prentice Hall.
Burkat, M., & Ellingsen, T. (2004). In- Kind Finance. A theory of Trade Credit. American Economic Review, 94(3), 569- 590.
Burkat, M., & Ellingsen, T. (2012). In- Kind Finance. A theory of Trade Credit. American Economic Review, 2(10), 52- 61.
Burns, E. A., Duffet, M., Kho, P. T., Meade, O. M., Adhikari, K. J., Sinuff, D., & Cook, J. D. (2008). A Guide for the Design and Conduct of Self-Administered Surveys of Clinicians. Canadian Medical Association Journal, 179(3), 245-252.
Cadsby, C. B., Frank, M., & Maksimovic, V. (1990). Pooling, Separation and Semi Separating Equilibria in Financial Markets. Some Experimental Evidence. Review of Financial Stusies, 3(5), 315- 342.
Central, B. K. (2011). Risk Management Survey for Banking Sector. Nairobi: CBK.
Charles, W. T. (2009). How to Improve Collection of Credit. International Journal of Finance, 15(8), 35- 47.
Chen, K., & Pan, C. (2012). An Empirical Study of Credit Risk Efficiency of Banking Industry in Taiwan. Web Journal of Chinese Management Review, 15(1), 1- 16.
Cheptum, F. J., & Otuya, R. I. (2016). The Relationship between Employee Relations and Performance of Supermarkets in Kenya. Global Journal of Advanced Research, 3(11), 1023-1030.
Cheruiyot, F. K. (2010). The Relationship Between Corporate Social Responsibility and Financial Performance of Companies Listed at the Nairobi Stocks Exchange. Journal of Management and Finance, 5(3), 12- 20.
Chijoriga, M. M. (2007). Application of Credit Scoring and Financial Distress Prediction Models to Commercial Banks Lending (2nd ed.). London: Sage.
Chittenden, F., Poutziouris, P., & Michaels, N. (1988). Financial Management and Working Capital Prices in UK SMEs, Manchester. Manchester Business School, 6(3), 235- 240.
Cho, H., & Pucik, V. (2005). Relationship Between Innovativeness, Quality, Growth, Profitability and Market Value. Strategic Management Journal, 26(6), 555- 575.
Denzil, N. K. (2010). The Sage Handbook of Qualitative Research (1st ed.). Carlifonia, USA: Sage Publications.
Deyoung, R., & Gokhan, T. (2013). Non- Traditional Banking Activities and Bank Failures During the Financial Crisis. Journal of Financial Intermediation, 12(10), 342- 354.
Dignam, A., & Galanis, M. (2008). Corporate Governance and the Importance of Macroeconomic Context. Journal of Financial Economics, 28(3), 201- 213.
Dignam, A., & Galanis, M. (2012). Corporate Governance and the Importance of Macroeconomic Context. Journal of Economics, 4(6), 19- 36.
Dobson, P. (2012). Critical Realism and Information Systems Research. Why Bother with Philosophy? Information Research, 7(2), 23- 35.
Dogan, M. (2013). Comparison of Financial Performance of Domestic and Foreign Banks. The Case of Turkey. International Journal of Business and Social Sciences, 4(2), 233- 240.
Eckbo, B. E., & Norli, O. (2004). The Choice of Seasoned Equity Selling Mechanisms. Theory and Evidence. International Journal of Science and Management, 5(3), 8- 19.
Edem, D. (2017). Liquidity Management and Performance of Deposit Taking Banks in Nigeria; An Investigation. International Journal of Economics, Finance and Management Sciences, 5(3), 146-161.
Ejoh, N. O., & Sackey, J. A. (2014). The Impact of Market Share on Deposit Money Banks Profitability in Nigeria. European Journal of Business and Management, 6(19), 243- 257.
Ejoh, N., Okpa, I., & Inyanga, E. (2014). The Relationship and Effect of Credit and Liquidity Risk on Bank Default Risk among Deposit Money Banks in Nigeria. Research Journal of Accounting and Finance, 5(16), 14- 151.
Eljelly, A. M. (2004). Liquidity- Profitability Trade- off. An Empirical Investigation in an Emerging Market. International Journal of Commercial and Management, 14(2), 48- 61.
Evans, M., Hastings, N., & Peacock, B. (2000). Statistical Distribution (3 ed.). New York, New York, United States of America: Wiley.
Fan, L., & Shaffer, S. (2004). Efficiency versus Risk in Large Domestic US Banks. Journal of Managerial Finance, 30(1), 1- 19.
Garmaise, M. J., & Moskowitz, T. J. (2015). Confronting Information Asymmetries. Evidence from Real Estate Market. Center for Research in Security Markets, 507(5), 45- 63.
Ghoshal, S., & Moran, P. (1996). Bad for Practice. A Critique of the Transaction Cost Theory. Academy of Management Review, 21(1), 13- 47.
Giannetti, M. (2015). Do Better Institutions Mitigate Agency Problems? Evidence from Corporate Finance Choices. Journal of Financial and Quantitative Analysis, 38(1), 185- 212.
Gichaaga, P. M. (2014). Effects of Management Accounting Practices on Financial Performance of Manufacturing Companies in Kenya. Journal of Financial Economics and Accounting, 4(11), 13-22.
Ginevicius, R., & Askoldas, P. (2011). A Framework of Evaluation of Commercial Banks. In the Case of Lithuanian Commercial Banks. Intellectual Economics, 5(37), 54- 68.
Gisemba, P. N. (2010). The Relationship between Credit Risk Management Practices and Financial Performance of SACCOs in Kenya. International Journal of Finance and Management, 6(4), 52- 68.
Gitau, R., & Gathiaga, J. (2017). The Moderating Effect of Firm Size on the Relationship between Capital Structure and Financial Dsitress of Non-Financial Companies Listed in Kenya. Journal of Finance and Accounting, 5(4), 151-158.
Glick, W. H., Washburn, N. T., & Miller, C. C. (2005). The Myth of Firm Performance. American Academy of Management, 12(3), 15- 32.
Gorton, G., & Metrick, A. (2009). Securitized Banking and the Run on Repo. Academy of Management Review, 140(3), 68- 79.
Graeber, D. R. (2015). Debt in the First 5000 Years (4 ed.). Brooklyn, New York, United States of America: Melville House.
Gramedia, A. (2012). Effect of Credit Default on Financial Performance of Manufacturing Firms. International Journal of Management, 3(6), 237-252.
Granovetter, M. (1985). Economic Action and Social Structure. The Peoblem of Embeddedness. American Journal of Sociology, 3(1), 481- 510.
Gujarati, D. N., & Sangeetha, S. (2007). Basic Econometrics (4 ed.). New Delhi, New Delhi, India: McGraw Hill Education Books.
Hair, J. F., Black, B., Babin, B., Anderson, R. E., & Tatham, R. L. (2006). Multivariate Data Analysis (6th ed.). Harlow, England: Pearson Education.
Hall, J. A. (2011). Accounting Information System (2nd ed.). Mason: Mason Centage Learning Publishers.
Halov, N., & Heider, F. (2004). Capital Structure, Risk and Asymmetric Information. Journal of Finance, 16(5), 82- 98.
Harris, M., & Raviv, A. (1991). The Theory of Capital Structure. Journal of Finance, 46(5), 297- 356.
Heal, G. (1976). Do Bad Products Drive Out Good? Quantitative Journal of Economics, 499(1), 500- 501.
Hendel, I., & Lizzeri, A. (1999). Adverse Selection in Durable Goods Markets. AM Economic Review, 89(3), 1097- 1099.
Hermann, A. M. (2008). Choosing and Successfully Sustaining Competitive Strategies in The European Pharmaceutical Industry. Max Planck Institute for The Study of Societies Cologne, 12(5), 15- 32.
Hgokcehan, D., & Waseem, A. (2014). Factors Affecting the Financial Performance of the Firms During the Financial Crisis. Evidence from Turkey. Ege Strategic Research Journal, 5(1), 65- 80.
Howorth, C., & Reber, B. (2003). Habitual Late Payment of Trade Credit. An Empirical Examination of UK Small Firms. Managerial and Decision Economics, 24(6), 471- 482.
Huber, J. (2014). The Case for Sovereign Money. American Journal of Economics and Finance, 17(5), 23- 34.
Hudon, M. (2010). Management of Microfinance Institutions. Do Subsidies Matter? Journal of Interventional Development, 905(1), 890- 905.
Iacoviello, M. (2015). Financial Business Cycles. Review of Economic Dynamics, 18(1), 140- 164.
Ifurueze, M. S. (2013). Determinants of Financial Performance. Global Journal of Management and Business Research, 13(2), 2249- 2288.
Jackling, B., Raar, J., Wigg, R., Williams, B., & Wines, G. (2004). Accounting. A Framework for Decision Making (6 ed.). Sydney, Sydney, Australia: McGraw Hill.
Jackson, P., Perraudin, W., & Saporta, V. (2012). Regulatory and Economic Solvency for Internationally Active Banks. Wiley Journal, 161(2), 53- 66.
Jain, N. (2014). Monitoring Costs and Trade Credit. Quarterly Review of Economics and Finance, 41(1), 89- 110.
Kagoyire, A., & Shukla, J. (2016). Effects of Credit Management on Performance of Commercial Banks in Rwanda. A Case Study of Equity Bank Rwanda. International Journal of Business and Management Review, 4(4), 1- 12.
Kalunda, E. N., & Kabiru, J. (2012). Pharmaceutical Manufacturing Companies in Kenya and Their Credit Risk Management Practices. Research Journal of Finance and Accounting, 3(5), 159- 167.
KAM. (2016). Kenya Association of Manufactures Annual Report. Nairobi: KAM.
Kaplan, S. N., & Bernadette, A. M. (2008). How Has CEO Turnover Changed? University of Chicago Booth School of Business. Wiley Journal, 25(3), 10- 16.
Kargi, H. S. (2011). Credit Risk and Performance of Nigerian Banks (5 ed.). Lagos, Zaria, Nigeria: Ahmadub Bello University.
Kariuki, J. N. (2010). Effective Collection Policy (1 ed.). Nairobi, Nairobi, Kenya: KASNEB Publishers.
Kateera, C. (2009). Microfinance Intervention, Entrepreneurial Skills and Rural Poverty Reduction. A Case of MFI's Performance in Mubende and Wakiso Districts. Makerere University Journal, 5(12), 12- 32.
Katz, A. (2007). Pharmaceutical Lemons. Innovation and Regulation in the Drug Industry. Mich Telecommunications and Technological Review, 14(1), 32- 51.
Katz, A. (2015). Pharmaceutical Lemons. Innovation and Regulation in the Drug Industry. Mich Telecommunications and Technological Review, 14(1), 32- 51
Kilonzo, J. M., Memba, S. F., & Njeru, A. (2016). Effects of Accounts Receivable on Financial Performance of Firms Funded by Government Venture in Kenya. Journal of Economics and Finance, 7(1), 62- 69.
Kithinji, A. M. (2010). Credit Risk Management and Profitability of Commercial Banks in Kenya (1 ed.). Nairobi, Nairobi, Kenya: University of Nairobi.
Kljelly, M. A. (2004). Liquidity Profitability Trade Off. An Empirical Investigation in an Emerging Market. International Journal of Commerce and Management Indiana, 14(2), 48- 61.
KNBS. (2016). Kenya National Bureau of Statistics Economic Survey. Nairobi: KNBS.
Kubo, I., & Saka, A. (2002). An Inquiry into the Motivations of Knowledge Workers in the Japanese Financial Industry. Journal of Knowledge Management, 6(3), 262- 271.
Lei, A. C., & Song, Z. (2013). Liquidity Creation, Bank Capital and Bank Performance in China. Global Finance Journal, 24(3), 188- 202.
Long, M. S., & Ravid, S. A. (2016). Trade Credit, Quality Guarantees and Product Marketability. Financial Management Journal, 22(4), 17- 27.
Lown, C. S., & Morgan, D. P. (2006). The Credit Cycle and the Business Cycle. New Findings Using the Loan Officer Opinion Survey. Journal of Money, Credit and Banking, 38(6), 1575- 1597.
Ludwig, S. M. (2000). Accounts Payable. A Guide to Running an Efficient Department Somerset (2 ed.). New York, New York, United States of America: John Wiley and Sons Inc.
Mahour, M. P., & Elham, H. F. (2010). The Effects of Productivity and Quality on Profitability in US Airline Industry. An Empirical Investigation. Managing Service and Quality. An International Journal, 20(5), 458- 474.
Maina, J. M. (2011). Relationship Between Credit Risk Management Practices and Financial Performance of Microfinance Institutions in Kenya. International Journal of Financial Management, 4(6), 32- 43.
Makori, J., Muturi, W., & Munene, C. (2013). The Challenges Facing Deposit- Taking Savings and Credit Cooperative Societies Regulatory Compliance in Kenya. A Case of Gusii Region. Interdisciplinary Journal of Contemporary Research in Business, 4(12), 54- 67.
Malik, M. F., Obiakor, R. T., & Okwa, A. T. (2011). Investigating Liquidity- Profitability Relationship in Business Organisations of the Tunisian Banking Industry Profitability. Financial Business Review, 2(3), 12- 21.
Mann, B., & Holdych, T. J. (2014). When Lemons are Better than Lemonade. The Case Against Mandatory Used Car Warranties. Yalel and Pol'y Review, 15(1), 143- 162.
Marotta, G. (2015). Is Trade Credit More Expensive than Bank Loans? Evidence from Italian Firm Level Data. Universita Di Modena e Reggio Emilia Review, 4(1), 12- 34.
Marsh, I. W. (2008). The Effects of Lenders' Credit Risk Transfer Activities on Borrowing Firm's Equity Returns. Cass Business School Review, London, 1(2), 24- 35.
Mendes, A., Gudoski, D. C., Cargnelutti, A. F., Silva, E. J., Carvairo, E. H., & Morello, G. M. (2014). Factors that Impact the Financial Performance of Broiler Production in Southern State Parana Brazil. Technological Federal University of Parana Review, 16(1), 32- 45.
Mian, A., & Sufi, A. (2009). The Consequences of Mortgage Credit Expansion. Evidence from US Mortgage Default Crisis. Quarterly Journal of Economics, 3(4), 11- 49.
Michael, E. R., Mumtaz, A., Derek, M. P., & Rop, D. V. (2015). A Theory of Relativity Setting Priorities and Goals for Financial Performance Improvement. Delloite Review, 17(10), 12- 23.
Miller, M. H. (1977). Dabt and Taxes. Journal of Finance, 32(1), 261- 276.
Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporate Finance and The Theory of Investment. American Economics Review, 48(5), 261- 297.
Mungai, J. N., Maingi, J., & Muathe, S. M. (2015). Loan Repayment and Sustainability of Government Funded Micro- Credit Initiatives in Murang’a County, Kenya. International Journal of Business and Social Science, 10(1), 11-23.
Munir, S., Muhammed, R., Rao, Q., Muhammad, A., & Ali, R. (2012). Financial Performance Assessment of Banks. A Case of Pakistan Public Sector Banks. International Journal of Business and Social Sciences, 3(14), 134- 155.
Mwangi, P. G., & Muriuki, M. M. (2013). Credit Risk Management Practices by Oil Companies in Kenya. International Journal of Business, Humanities and Technology, 3(2), 72- 80.
Myers, C. S. (2003). Principles of Corporate Finance (1 ed.). New York, New York, United States of America: McGraw Hill.
Myers, J. (2012). Assessing the Cost of Fractional Reserve Banking. A Theoretical Exposition and Examination of Post- Meiji Japan (2 ed.). Columbia, Columbia, United States of America: QMSS Columbia University.
Myers, S. C. (2015). The Capital Structure Puzle. Journal of Finance, 39(1), 575- 592.
Naser, K., & Mokhtar, M. Z. (2004). Firm Performance, Macro- Economic Variables and Firm Size. Journal of Finance, 4(5), 543- 579.
Nassiuma, D. K. (2000). Survey Sampling. Theory and Methods (1 ed.). Nairobi, Nairobi, Kenya: University of Nairobi Press.
Nilsen, J. H. (2002). Trade Credit and the Bank Lending Channel. Journal of Money, Credit and Banking, 34(1), 226- 253.
Nilsen, J. H. (2009). Trade Credit and the Bank Lending Channel. Journal of Monetary Management, 12(5), 78- 92.
Nilsen, J. H. (2016). Trade Credit and the Bank Lending Channel. Journal of Developmkent, 5(6), 14- 26.
Njoroge, I. (2015). Effects of Liquidity Management on the Security Market Performance of Companies Listed at the NSE. IOSR Journal of Applied Physics, 6(6), 58-61.
Noe, T. (1988). Capital Structure and Signalling Game Equilibria. Review of Financial Studies, 1(7), 321- 355.
NSE. (2017). Nairobi Securities Exchange Annual Report. Nairobi: NSE.
Nyabwanga, R. N. (2013). An Empirical Analysis of the Liquidity, Solvency and Financial Health of Small and Medium Sized Enterprises in Kisii Municipality, Kenya. Journal of Business and Management, 5(8), 222- 283.
Odhiambo, M., & Waiganjo, E. (2014). Role of Human Capital Management Strategies on Employee Mobility in Kenya's Public Universities. International Journal of Business and Social Science, 5(6), 185-189.
Ojeka, S. A. (2012). Credit Policy and Its Effects on Liquidity. A Study of Selected Manufacturing Companies in Nigeria. The Journal of Commerce, 3(3), 10- 19.
Ojilo, F. (2012). The Impact of Credit Risk Management on the Financial Performance of Commercial Banks in Kenya. DBA Africa Management Review, 3(1), 22- 37.
Olweny, T., Namusonge, G., & Onyango, S. (2012). The Influence of Socio- Cultural Background on Individual Investor Risk Tolerance at Nairobi Securities Exchange. International Journal of Arts and Commerce, 1(4), 87-106.
Ongore, V. O., & Kusa, G. B. (2013). Determinants of Financial Performance of Commercial Banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237- 252.
Oyadonghan, K. J., & Bingilar, P. F. (2014). The Impact of Effective Credit Policy on Liquidity of Manufacturing Companies in Nigeria. European Journal of Accounting, Auditing and Finance, 2(7), 88- 100.
Pandey, I. M. (2011). Financial Management (9th ed.). New Delhi, New Delhi, India: Vikas Publishing House.
Peacock, R., Martin, P., Burrow, M., Petty, J. W., Keown, A. J., & J, R. (2003). Financial Management (3th ed.). Beijing, Beijing, China: Prentice Hall.
Raeisi, M., Gavara, M., & Dnarehzershk, I. A. (2014). Bank Liquidity and its Determinants in Iran. International Journal of Management Sciences and Economics, 1(5), 30- 36.
Rajan, R. G. (2010). Fault Lines (2nd ed.). New York, New York, United States of America: Princeton University Press.
Rajangam, P., & Solavaraj, V. (2015). Evaluating the Financial Health of West Coast Paper Mills Limited Using z Score Model. Primax International Journal of Commerce and Management Research, 1(1), 1- 12.
Ramond , A., Ezejiofor, P., Adigwe, P. K., & John, A. R. (2012). The Credit Management on Liquidity and Profitability Positions of a Manufacturing Company in Nigeria. The Journal of Commerce, 3(5), 10- 19.
Reddy, N., & Reddy, V. (2012). Financial Status of Selected Sugar Manufacturing Firms. International Journal of Marketing, Financial Services and Management Research, 1(4), 64- 79.
Reeve, J. M., & Warren, C. (2018). Principles of Accounting and Finance (2nd ed.). Jakarta, Indonesia: Salemba Empat.
Remenyi, D., Williams, B., Money, A., & Swartz, E. (1998). Doing Research in Business and Management. An Introduction to Process and Method (1st ed.). London, Britain, United Kingdom: Sage.
Schwartz, R., & Whitcomb, D. (1978). Implicit Transfers in the Extension of Trade Credit. The Channels of Redistribution Through the Financial System, 2(14), 191- 208.
Sekaran, U., & Bougie, R. (2011). Research Methods for Business. A Skill Building Approach (5th ed.). New Delhi, New Delhi, India: Aggarwal Printing Press.
Shleifer, A., & Vishny, W. R. (2010). Unstable Banking. Journal of Financial Economics, 97(3), 306- 318.
Siro, R. O. (2013). Effects of Capital Structure on the Financial Performance of Firms Lited in Nairobi Securities Exchange. Journal of Economics and Financial Management, 4(7), 52- 65.
Suka, J. N. (2012). The Impact of Capital Adequacy on the Financial Performance of Commercial Banks Quoted at the Nairobi Securities Exchange. Journal of Finance, Money and Bank, 4(5), 12- 26.
Sunarti, W. (2008). System Management (1st ed.). Malang, Perbankan, Indonesia: NN Press.
Swamy, V. (2014). Banking Stability for Financial Stability. Journal of Financial Economics, 115(2), 15- 26.
Taylor, J. (2010). Globalization and Monetary Policy. Missions Accomplished in University of Chicago. International Dimensions of Monetary Policy, 21(12), 609- 624.
Thirlwall, A. P. (2017). Monetarism in Post Depssion Crisis. Encyclopaedia of Political Economy, 21(6), 750- 753.
Tucker, M., & Miles, G. (2004). Financial Performance of Microfinance Institutions. A Comparison to Performance of Regional Commercial Banks by Geographical Regions. Journal of Microfinance Review, 6(1), 41- 54.
Turyahebwa, A. (2013). Financial Performance in the Selected Microfinance Institutions in Uganda. International Journal of Commerce and Management, 2(5), 43- 53.
Upagade, V., & Shende, A. (2012). Research Methodology (2 ed.). New Delhi, Ram Nagar: Chad and Company Limited.
Vodova, P. (2011). Liquidity of Czech Commercial Banks and its Determinants. International Journal of Mathematical Models and Methods in Applied Sciences, 6(4), 1060- 1067.
Wei, K., & Zhang, Y. (2008). Ownership Structure, Cash Flow and Capital Investment. Evidence from East Asian Economies Before the Financial Crisis. Journal of Corporate Finance, 14(2), 118- 132.
Were, A. (2016). Manufacturing in Kenya. Features, Challenges and Opportunities. International Journal of Science, Management and Engineering, 4(6), 15-26.
Werner, R. (1997). Towards a New Monetary Paradigm. A Quantity Theorem of Disaggregated Credit. Evidence from Japan Review, 30(1), 276- 309.
Werner, R. (2009). Applying the Quantity Theory of Credit (1st ed.). New York, New York, United States of America: Free Press.
Werner, R. (2012). Towards a New Research Programme on Banking and the Economy Implications of a Quantity Equation Model for the Prevention and Resolution of Banking and Debt Crises. International Review of Financial Analysis, 25(5), 94- 105.
Werner, R. (2015). Applying the Quantity Theory of Credit (2nd ed.). New York, New York, United States of America: Free Press.
Werner, R. A. (1992). Towards a Quantity Theorem of Disaggregated Credit and International Capital Flows. Royal Economic Society Annual Conference (pp. 1- 15). York: York Publishers.
White, H., & Graffith, B. (1981). Author Co- Citation. A Literature Measure of Intellectual Structure. Journal of the American Society for Information Science, 32(13), 163- 171.
Wijaya, K. (2010). Analysis of Indonesian Firms. Alex Media Journals, 6(4), 18-37.
Williamson, O. (1975). Markets and Hierarchies Analysis and Antitrust Implications. A Study in the Economics of Internal Organization (2nd ed.). New York, New York, United States of America: Free Press.
Williamson, O. (1979). Transaction Cost Economics. The Governance of Contractual Obligations. Journal of Law and Economics, 22(2), 233- 261.
Williamson, O. (1981). The Economics of Organisation. The Transaction Cost Approach. American Journal of Sociology, 87(3), 548- 577.
Williamson, O. (1985). The Economic Institutions of Capitalism. Firms, Markets and Relational Contracting. Journal of Law and Economics, 46(3), 548- 601.
Wilner, B. S. (2016). The Exploitation of Relationships in Financial Distress. The Case of Trade Credit. Journal of Finance, 55(1), 153- 178.
Wray, R. (2004). The Credit Money and State Money Approaches. University of Missouri- Kansas Paper Review, 3(2), 52- 63.
Yamane, T. (1967). Statistics, an Introductory Analysis (2nd ed.). New York, New York, United States of America: Harper and Row Publishers.
Yasuda, H. (2005). Firm's Growth and Finance Strategy. Journal of Finance, 27(1), 30- 45.
Yilmaz, A. A. (2013). Profitability of Banking System. Evidence from Emerging Market. WEI International Academic Review, 12(6), 105- 111.
Downloads
Published
2019-04-23
How to Cite
Cheptum, F. J. (2019). THE EFFECT OF CREDIT COLLECTION PRACTICES ON FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS IN KENYA. International Journal of Finance and Accounting, 4(1), 31 – 55. https://doi.org/10.47604/ijfa.873
Issue
Section
Articles
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
