INFLUENCE OF POLICIES ON ACCOUNTS RECEIVABLES MANAGEMENT IN THE HOTEL INDUSTRY IN KENYA

Simon K. Ngugi (), Prof. Roselyn W. Gakure (), Dr. Geoffrey M Gekara () and Dr. James K. Kahiri ()

American Journal of Accounting, 2017, vol. 1, issue 1, 93 - 115

Abstract: Purpose: The purpose of the study was to determine the influence of policies on accounts receivables management in the hotel industry in Kenya.Methodology: The target population of the study was 47 hotels and lodges in Kenya. A sample of 141 respondents was selected using stratified random sampling in each hotel and lodge to group respondents into three strata. The strata were that of top management, finance staff and credit control staff. This study used both primary and secondary data. Data collection methods used included: questionnaires and secondary data collection guide. Secondary data was collected for all variables for a period of three years (2007 to 2010). Data was analyzed quantitatively and presented descriptively and illustrated by use of tables and charts. Information was sorted, coded and input into the statistical package for social sciences (SPSS) for production of graphs, tables, descriptive statistics and inferential statistics. In particular, means, standard deviations, and frequencies. Inferential statistics such as factor analysis and odd ratio regression were also used. Results: Based on the findings, the study concluded that management policies are a key driver to accounts receivables management in hotel industry in Kenya. It was possible to conclude that the hotels had put into place strict management policies and internal operating procedures approved by the senior management on accounts receivables.Unique contribution to theory, practice and policy: Based on the findings, the study recommends that that hotel management should ensure that they employ workers who can follow orders with minimum supervision and reward them well in terms of compensation to avoid cases of theft, complaints from customers and endorse a heavy penalty for any employee who provide substandard service.

Keywords: policies; accounts receivables management; hotel industry in Kenya (search for similar items in EconPapers)
Date: 2017
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