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IJARKE Business & Management Journal
This therefore implies that all the four variables have a positive relationship with financial performance of transport firms in
Kenya with credit policy contributing most to the dependent variable and account receivable contributing lowest to the dependent
variable. From the table we can see that the predictor variables of credit risk control, credit policy, account receivable and credit
term got variable coefficients statistically significant since their p-values are less than the common alpha level of 0.05.
9.1 Conclusions
From the table we can see that the predictor variables of credit risk control, credit policy, account receivables and credit terms
got variable coefficients statistically significant since their p-values are less than the common alpha level of 0.05.
9. Conclusions and Recommendations
ISSN: 2617-4138
DOI: 10.32898/ibmj.01/1.4article07
On credit risk control, the study findings rejected the null hypothesis that credit risk control has no effect on financial
performance of transport firms in Mombasa County. Therefore, the study concluded that credit risk control has a significant effect
on financial performance of transport firms in Mombasa County.
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On credit policy, the study findings rejected the null hypothesis that credit policy has no significant effect of financial
performance of transport firms in Mombasa County. Therefore, the study concluded that credit policy has a significant effect on
financial performance of transport firms in Mombasa County.
On account receivables, the study findings rejected the null hypothesis that account receivable has no significant effect of
financial performance of transport firms in Mombasa County. Therefore, the study concluded that account receivable has a
significant effect on financial performance of transport firms in Mombasa County.
9.2 Recommendations
On credit terms, the study findings rejected the null hypothesis that credit terms have no significant effect of financial
performance of transport firms in Mombasa County. Therefore, the study concluded that credit terms has a significant effect on
financial performance of transport firms in Mombasa County.
The study recommended as follows:
i. That transport firms should put in place a robust credit risk control mechanism to safeguard the interest of the company
first.
ii. That transport firms should be reviewing from time to time its credit policy to be in line with international acceptable
standards.
iii. That accounts receivables should be well managed, and its audit reports and suggestions implemented
iv. That credit terms should be varied from client to client to increase sales volumes.
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95 IJARKE PEER REVIEWED JOURNAL
Vol. 1, Issue 4
May-Jul. 2019
