Accounts Receivable Management Practices and Financial Performance of Manufacturing Companies in Rwanda; A Case Study of CIMERWA Plc

Q3 Economics, Econometrics and Finance

Afro-Asian Journal of Finance and Accounting Pub Date : 2023-11-03 DOI:10.53819/81018102t2247

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引用次数: 0

Abstract

The general objective of this study was to determine the effects of accounts receivable management practices on financial performance of manufacturing companies in Rwanda. The specific objectives were to: analyze the effect of Credit policy on financial performance of manufacturing companies in Rwanda, examine the effect of Collection policy on financial performance of manufacturing companies in Rwanda, establish the effect of Credit analysis on financial performance of manufacturing companies in Rwanda and assess the effect of Billing and invoicing on financial performance of manufacturing companies in Rwanda. The study adopted a descriptive cross-sectional survey research design which allowed the collection of primary quantitative data through structured questionnaires. The target population was 61 employees from Cimerwa Plc. Census approach was used in this study. Both primary and secondary data was used for the study. Primary data was collected using a well-structured questionnaire. The study utilized questionnaires as an instrument for data collection. Data was analyzed for descriptive and inferential statistics using SPSS version 21. Descriptive statistics such as mean, standard deviation was used to test the data. Ordinary Least Square method was utilized to establish the cause-effect relationship between variables while hypotheses were tested at 5% significance level. The findings reveal that Credit Policy and Credit Analysis have a statistically significant positive impact on Financial Performance (B = 0.502, Beta = 0.274, p = 0.033 and B = 0.595, Beta = 0.548, p = 0.004, respectively), suggesting that a more favorable credit policy and more robust credit analysis positively affect financial performance. In contrast, the results suggest that Collection Policy and Billing and Invoicing do not have a significant influence on Financial Performance (B = -0.007, Beta = -0.008, p = 0.942 and B = -0.377, Beta = -0.327, p = 0.069, respectively). This study in Rwanda emphasizes the significant impact of effective accounts receivable management on manufacturing companies' financial performance. It advocates for prudent credit policies, streamlined billing processes, and comprehensive credit analysis to enhance liquidity, profitability, and overall financial health. The recommendation for CIMERWA PLC includes implementing efficient credit policies and collection procedures for improved financial outcomes. Future research addressing Rwanda's specific economic context is suggested for tailored insights. Keywords: Accounts Receivable Management Practices, Financial Performance, Manufacturing Companies, Cimerwa Plc, Rwanda

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卢旺达制造企业的应收账款管理实践与财务绩效以CIMERWA Plc为例

本研究的总目标是确定应收账款管理做法对卢旺达制造公司财务业绩的影响。具体目标是:分析信贷政策对卢旺达制造公司财务绩效的影响，检查收款政策对卢旺达制造公司财务绩效的影响，建立信贷分析对卢旺达制造公司财务绩效的影响，评估开票和发票对卢旺达制造公司财务绩效的影响。本研究采用描述性横断面调查研究设计，通过结构化问卷收集初步定量数据。目标人群是来自Cimerwa Plc的61名员工。本研究采用人口普查方法。本研究采用了第一手资料和第二手资料。使用结构良好的问卷收集原始数据。该研究使用问卷作为数据收集的工具。使用SPSS version 21对数据进行描述性和推断性统计分析。采用均值、标准差等描述性统计方法对数据进行检验。采用普通最小二乘法建立变量间的因果关系，在5%显著性水平下检验假设。研究发现，信用政策和信用分析对财务绩效有显著的正向影响(B = 0.502, Beta = 0.274, p = 0.033; B = 0.595, Beta = 0.548, p = 0.004)，表明更有利的信用政策和更稳健的信用分析对财务绩效有正向影响。相反，结果表明，收款政策和开票对财务绩效没有显著影响(B = -0.007, Beta = -0.008, p = 0.942和B = -0.377, Beta = -0.327, p = 0.069)。这项在卢旺达进行的研究强调了有效的应收账款管理对制造公司财务业绩的重大影响。它提倡谨慎的信用政策、简化的计费流程和全面的信用分析，以增强流动性、盈利能力和整体财务健康。对CIMERWA PLC的建议包括实施有效的信贷政策和收款程序，以改善财务结果。建议针对卢旺达的具体经济背景进行未来研究，以获得量身定制的见解。关键词:应收账款管理实践，财务绩效，制造公司，Cimerwa Plc，卢旺达

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来源期刊

Afro-Asian Journal of Finance and Accounting Economics, Econometrics and Finance-Finance

CiteScore

0.70

自引率

0.00%

发文量

期刊介绍： Finance and accounting are seen as essential components for the successful implementation of market-based development policies supporting economic liberalisation in the rapidly emerging economies in Africa, the Middle-East and Asia. AAJFA aims to foster greater discussion and research of the development of the finance and accounting disciplines in these regions. A major feature of the journal will be to emphasise the implications of this development and the effects on businesses, academics and professionals. Topics covered include: -Asset pricing, corporate finance, banking; market microstructure -Behavioural and experimental finance; law and finance -Emerging economies: finance, audit committees, corporate governance -Islamic finance, accounting and auditing -Equity analysis and valuation, venture capital and IPOs -National GAAP and IASs compliance, harmonisation and strategies -Financial measurement/disclosure, and the quality of information reported -Accountability and social/ethical/environmental measurement/reporting -Cultural, political, institutional impact on financial measurement/disclosure -Accounting practices for intellectual capital and other intangible assets -Provision of non-audit services and impairment to auditor independence -Audit quality and auditor skills; internal control/auditing -Management accounting, control and /use of key performance indicators -Accounting education and professional development, accounting history -Public sector and not-for-profit accounting