Mountain Top University Library

Credit management is one of the most important activities in any company and cannot be
overlooked by any organization that wants to make profit. The inability of firms to show a true
and fair view of their financial statements because they grant credit to customers has led to the
need to carry out this study. This study examined the effect of credit management on the corporate
performance of Quoted Food and beverage manufacturing firms in Nigeria. Client appraisal, Credit
risk and Credit policy were used as proxies for Credit Management and Financial Performance
was used for Corporate Performance. The research design adopted was survey research design.
The sample size was selected using the simple random sampling technique. Five out of the sixteen
quoted food and beverage manufacturing industry were selected for this study. The researcher used
primary data from which necessary data was sourced from the administration of Questionnaires.
The researcher made use of Regression analysis to examine the relationship between the variables.
The result reveals that the three variables have a positive relationship to corporate performance
The result reveals that jointly, client appraisal ( p.value = 0.044), credit risk (p.value = 0.342) and
Credit policy (p.value= 0.392) does not significantly affect the corporate performance of Quoted
food and Beverage manufacturing firms in Nigeria but there is a significant relationship between
client appraisal and corporate performance. Recommendation for this study includes that
management should ensure that competent personnel should be in charge of client appraisal.