Effect of Trade Credit and Credit Policy on the Performance of Building Industry in Nigeria

Adejuwon Joshua Adewale (), Oladimeji, Azeezat Atinuke () and Adejuwon Adefisayo Oluwakemi ()
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Adejuwon Joshua Adewale: Department of Management and Accounting, Postal: Lead City University,Ibadan, Nigeria, https://www.afarng.org/Volume3Issue1June2023.php
Oladimeji, Azeezat Atinuke: Department of Management and Accounting, Postal: Lead City University,Ibadan, Nigeria, https://www.afarng.org/Volume3Issue1June2023.php
Adejuwon Adefisayo Oluwakemi: Department of Management and Accounting, Postal: Lead City University,Ibadan, Nigeria,, https://www.afarng.org/Volume3Issue1June2023.php

Multidisciplinary Journal of Social Sciences, 2023, vol. 3, issue 1, 21-47

Abstract: Building industries play an important role in the economy and the activities of the industry are also vital to the achievement of national socio-economic development goals of providing shelter, infrastructure, and employment. The industry could be enhanced with the opportunity to trade credit and a proper credit policy. When this is not the case, it is expected that the industries would not perform optimally. It is in this regard that this study focused on the effect of trade credit and credit policy on performance of building industry in Nigeria. Ex-post facto research design was adopted. The study populations are the 32 building industries in Nigeria. Data was collected from audited annual reports and accounts of the companies listed in building industry at the Nigeria Stock Exchange. Data collected was analyzed using descriptive and inferential statistics. Findings revealed that trade credit had significant influence on performance of building industry in Nigeria (Adj. R2 = 0.138; p = 0.000), credit policy was found to be significantly effective on performance of building industry in Nigeria (Adj. R2 = 0.100; p = 0.000). Jointly, trade credit and credit policy were found to affect performance of building industry statistically significantly in Nigeria (Adj. = 0.106, p = 0.000). Based on the above findings, this study concludes that only trade credit and credit policy both have significant and positive effect on performance of building industry in Nigeria. The study therefore recommended that managements of the building industries in Nigeria should improve their credit policy and also their performance so as to have access to more trade credit.

Keywords: Trade credit; Credit policy; Performance of building industry. (search for similar items in EconPapers)
Date: 2023
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