Automated Credit Management Systems and Financial Performance of Listed Manufacturing Firms in Nigeria

Abstract

Automated credit management system and financial performance are the nuclei to the survival of the listed manufacturing firms. Despite this, the level of dependency of the latter on the former remained unresolved by the past studies. As a result, this study examined the impact of automated credit management systems on the financial performance of listed manufacturing firms in Nigeria. The study employed an ex post facto research design. A sample size of ten(10) listed manufacturing firms was selected from the population of  55 firms using judgemental sampling technique. The data which were collected through the secondary source were analyzed descriptively and inferentially. In addition, this study conducted some post-estimation tests for the validity and reliability of data. The findings revealed that receivable collection period had a significant negative effect on ROA and EPS, while payable payment period negatively affected ROA and EPS. Inventory turnover rate exerted a significant positive influence on EPS but showed no significant effect on ROA. The joint effects of the explanatory variables on all financial performance measures were statistically significant, leading to the rejection of the null hypothesis.

The study concluded that automated credit management system significantly influenced the financial performance of listed manufacturing firms in Nigeria, with the efficient contributions of receivables management and higher inventory turnover. In view of this, the study recommends greater investment in integrated automated inventory and receivables management systems by the management.

Keywords: Automation, Credit management, Financial performance, Inventory  turnover rate, Receivable collection period, Return on assets.

DOI: 10.7176/EJBM/18-8-07

Publication date: August 30^th 2026