EFFECT OF DEBTORS MANAGEMENT ON FINANCIAL PERFORMANCE OF LISTED CONSTRUCTION AND REAL ESTATE COMPANIES IN NIGERIA

Abstract

This study examined the effect of debtor’s management on financial performance of listed construction and real estate companies in Nigeria. The ex post facto research design was adopted for the study with a population of six (6) listed construction and real estate companies in Nigeria as listed by the Nigerian Exchange Group in 2022. Data were retrieved from the annual reports of the selected construction and real estate companies for the period 2012 to 2021. Multiple regression (Ordinary Least Square) analysis was used to analysed the data gathered with the aid of Stata12 statistical software. The study revealed a negative and insignificant effect of average collection period on return on assets. Also, it revealed a positive but insignificant effect of debtor’s turnover on return on assets. The study recommended that construction and real estate companies should reduce average collection period, accounts receivable turnover in order to improve their financial performance. Finally, that construction and real estate companies should have established debt collection Policy that will help increase its debtor’s turnover thereby enhancing its financial performance.