The impact of credit policy on firm performance among Malaysian manufacturers

Credit policy is a set of temporary payment terms agreed between seller and buyer, in a form of credit. Credit expedites some of the complicated process organization experienced. Normally, the process required high level approval in order to complete procure activities or business transaction. In Ma...

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Main Authors: Azman, Ahmad Afiq, Ramakrishnan, Suresh
Format: Article
Language:English
Published: Readers Insight Publisher 2021
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Online Access:http://eprints.utm.my/id/eprint/97654/1/AhmadAfiq2021_TheImpactofCreditPolicyonFirmPerformance.pdf
http://eprints.utm.my/id/eprint/97654/
http://dx.doi.org/10.31580/jmis.v4i1.2046
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spelling my.utm.976542022-10-21T03:16:31Z http://eprints.utm.my/id/eprint/97654/ The impact of credit policy on firm performance among Malaysian manufacturers Azman, Ahmad Afiq Ramakrishnan, Suresh H Social Sciences (General) HD Industries. Land use. Labor Credit policy is a set of temporary payment terms agreed between seller and buyer, in a form of credit. Credit expedites some of the complicated process organization experienced. Normally, the process required high level approval in order to complete procure activities or business transaction. In Malaysia, the credit policy has become one of the sales tools to secure more business, and identify new business opportunities. However, it is unsure to what extent the credit policy helps on firm performance. Thus, the aim of this study is to investigate the relation, the factors and the influence. The research tested on Malaysian manufacturers. A total of 35 survey questionnaires were received from Malaysian manufacturers and the data has been analysed using Statistical Package for Social Science (SPSS) software. Three out of four dimensional factors were rejected; credit structure, receivables management and inventory control. Only one of the factors was accepted and has significant impact on firm performance which is payables management. The results of the study revealed 41% of firm performance were depending on credit policy. This study fills the gap in the literature of credit policy conducted in Malaysia. Readers Insight Publisher 2021-07-29 Article PeerReviewed application/pdf en http://eprints.utm.my/id/eprint/97654/1/AhmadAfiq2021_TheImpactofCreditPolicyonFirmPerformance.pdf Azman, Ahmad Afiq and Ramakrishnan, Suresh (2021) The impact of credit policy on firm performance among Malaysian manufacturers. Journal of Marketing and Information Systems (JMIS), 4 (1). pp. 43-77. ISSN 2664-7990 http://dx.doi.org/10.31580/jmis.v4i1.2046 DOI:10.31580/jmis.v4i1.2046
institution Universiti Teknologi Malaysia
building UTM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Malaysia
content_source UTM Institutional Repository
url_provider http://eprints.utm.my/
language English
topic H Social Sciences (General)
HD Industries. Land use. Labor
spellingShingle H Social Sciences (General)
HD Industries. Land use. Labor
Azman, Ahmad Afiq
Ramakrishnan, Suresh
The impact of credit policy on firm performance among Malaysian manufacturers
description Credit policy is a set of temporary payment terms agreed between seller and buyer, in a form of credit. Credit expedites some of the complicated process organization experienced. Normally, the process required high level approval in order to complete procure activities or business transaction. In Malaysia, the credit policy has become one of the sales tools to secure more business, and identify new business opportunities. However, it is unsure to what extent the credit policy helps on firm performance. Thus, the aim of this study is to investigate the relation, the factors and the influence. The research tested on Malaysian manufacturers. A total of 35 survey questionnaires were received from Malaysian manufacturers and the data has been analysed using Statistical Package for Social Science (SPSS) software. Three out of four dimensional factors were rejected; credit structure, receivables management and inventory control. Only one of the factors was accepted and has significant impact on firm performance which is payables management. The results of the study revealed 41% of firm performance were depending on credit policy. This study fills the gap in the literature of credit policy conducted in Malaysia.
format Article
author Azman, Ahmad Afiq
Ramakrishnan, Suresh
author_facet Azman, Ahmad Afiq
Ramakrishnan, Suresh
author_sort Azman, Ahmad Afiq
title The impact of credit policy on firm performance among Malaysian manufacturers
title_short The impact of credit policy on firm performance among Malaysian manufacturers
title_full The impact of credit policy on firm performance among Malaysian manufacturers
title_fullStr The impact of credit policy on firm performance among Malaysian manufacturers
title_full_unstemmed The impact of credit policy on firm performance among Malaysian manufacturers
title_sort impact of credit policy on firm performance among malaysian manufacturers
publisher Readers Insight Publisher
publishDate 2021
url http://eprints.utm.my/id/eprint/97654/1/AhmadAfiq2021_TheImpactofCreditPolicyonFirmPerformance.pdf
http://eprints.utm.my/id/eprint/97654/
http://dx.doi.org/10.31580/jmis.v4i1.2046
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score 13.211869