Volume-2 ~ Issue-4
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| Paper Type | : | Research Paper |
| Title | : | Effects of Credit Policy on Profitability of Manufacturing Firms in Kenya |
| Country | : | Kenya |
| Authors | : | James N. Kungu, Kenneth L. Wanjau, Anthony G. Waititu, Geoffrey M. Gekara |
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: | 10.9790/5933-02040107  |
Abstract: This paper considered the effects of credit policy on profitability of manufacturing firms in Kenya. The study looked at the elements that constitute the credit policy; credit terms, collection efforts, credit period and credit standards. A descriptive research design was used to collect the data from the field and a stratified random sampling technique was used to come up with a sample of 81 manufacturing firms. A questionnaire was used to collect data from 81 manufacturing firms in Nairobi industrial area and its environs in Kenya. However, only 71 questionnaires were returned. The chief finance officers of the manufacturing firms were requested to fill in the questionnaire. Both descriptive and inferential analyses were done. Analysis of Variance (ANOVA) and regression analysis were used to test the hypothesis. The results show that there is a positive relationship between profitability and credit policy in the manufacturing firms in Kenya (0.304). Credit policy explains only 9.2% of the profitability in the manufacturing firms in Kenya. 90.8% of the variation in profitability is explained by other factors. The findings of the study revealed that the way credit policy is designed impacts on the profitability of manufacturing firms. Therefore, we recommend that the finance managers of manufacturing firms regularly review the credit policy of their firms to ensure that they are ideal and result in increased profitability.
Keywords: Accounts Receivables, Credit Policy, Manufacturing Firms, Profitability, Trade Credit.
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| Paper Type | : | Research Paper |
| Title | : | Interest Rate as a Link to Investment Decision in Nigeria (Mundell – Flemming Model) |
| Country | : | Nigeria |
| Authors | : | Osundina J. A., Osundina C. K. |
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: | 10.9790/5933-0240814 |
Abstract: The link between interest rate and investment decision in Nigeria was investigated in this study using Multiple Linear Regression model. A modified Mundel – Flemming model was used where interest rate was the dependent variable and other variables such as; Gross domestic product, investment level, Government spending, debt and exchange rate were independent variables. We found out that there is no strong empirical evidence that there is a link between interest rate and investment decision in Nigeria. We recommend however that there should be efficient infrastructure and the clamor for Islamic Banking, which is interest rate free should be embraced since it will not hurt investment decisions in any way.
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| Paper Type | : | Research Paper |
| Title | : | Performance of Agro-Based Industries in India: A Critical Analysis |
| Country | : | India |
| Authors | : | C. Lakshmi kantha reddy, Prof. S. Rathna kumari |
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: | 10.9790/5933-0241525 |
Abstract: Agriculture has been a way of life and continues to be the single most important livelihood of the masses. Agricultural policy focus in India across decades has been on self-sufficiency and self-reliance in food grains production. Considerable progress has been made on this front. Food grains production rose from 52 million tonnes in 1951-52 to 244.78 million tonnes in 2010-11. The share of agriculture in real GDP has fallen given its lower growth rate relative to industry and services. However, what is of concern is that growth in the agricultural sector has quite often fallen short of the Plan targets. During the period 1960-61 to 2010-11, food grains production grew at a compounded annual growth rate (CAGR) of around 2 per cent. In fact, the Ninth and Tenth Five Year Plans witnessed agricultural sectoral growth rate of 2.44 per cent and 2.30 per cent respectively compared to 4.72 per cent during Eighth Five Year Plan. During the current Five Year plan, agriculture growth is estimated at 3.28 per cent against a target of 4 per cent.
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