TABLE OF CONTENTS
DECLARATION .................................................................................................................... i
APPROVAL SHEET ............................................................................................................... ii
DEDICATION ..................................................................................................................... iii
ACKNOWLEDGEMENT ........................................................................................................ iv
ABSTRACT ......................................................................................................................... v
CHAPTER ONE .................................................................................................................... 1
INTRODUCTION ................................................................................................................. 1
Background of the study .................................................................................................. 1
Statement of the Problem ................................................................................................ 3
Purpose of the Study ....................................................................................................... 3
Research Objectives ........................................................................................................ 3
Research Questions ......................................................................................................... 4
Hypothesis ...••...........•.........••.....•.................................•......•.........•...............•................. 4
Scope of the study .......................................................................................................... 4
Significance of the Study ................. , ................................................................................ 5
Operational Definitions of Key Terms ................................................................................ 5
CHAPTER TW0 ................................................................................................................... 6
LITERATURE REVIEW ......................................................................................................... 6
Concepts from Authors .................................................................................................... 6
Theoretical Perspectives ................................................................................................. 11
CHAPTER THREE .............................................................................................................. 13
METHODOLOGY ............................................................................................................... 13 . I
Research Design ........................................................................................................... 13
Research Population ...................................................................................................... 13
Sample Size .................................................................................................................. 13
Sampling Procedure ....................................................................................................... 13
Research Instrument ..................................................................................................... 14
Validity and Reliability of the Instrument ......................................................................... 14
Research Procedures .......................................... · ........................................................... 14
Data Analysis ................................................................................................................ 15
Ethical Considerations .................................................................................................... 15 . I
vi
Limitations of the Study ................................................................................................. 15
CHAPTER FOUR ................................................................................................................ 17
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA .............................................. 17
Respondents' demographic characteristics ....................................................................... 17
Credit Control systems in Fina Bank Uganda Limited ......................................................... 19
Financial Performance in Fina Bank Uganda Limited ......................................................... 22
Difference in Credit Control Systems and Financial Performance According to relevant
demographic characteristics ........................................................................................... 24
Relationship between Credit control systems and Financial performances in Fina Bank Uganda
Limited ......................................................................................................................... 27
CHAPTER FIVE ................................................................................................................. 30
FINDINGS, CONLUSIONS AND RECOMMENDATIONS ........................................................... 30
Findings ....................................................................................................................... 30
Conclusions .................................................................................................................. 30
Recommendations ......................................................................................................... 32
Areas for future Research .............................................................................................. 32
REFERENCES ................................................................................................................ 33
APPENDICES .................................................................................................................... 37
Research Instrument ..................................................................................................... 37
ABSTRACT The study examined the relationship between Credit Control and Financial Performance of Fina Banks Kampala, Uganda and was based on four specific objectives: (a) to determine the demographic characteristics of the respondents in terms of age, gender, educational qualifications, and years in the present position; (b) to determine the level of credit control; (c) to determine the extent of financial performance; and (d) to establish if there is a significant relationship between the Credit Control and Financial Performance of Fina Banks Kampala, Uganda. The study employed a descriptive correlation research design. SAQ were used to collect primary data from 100 out of 134 employees, using simple random sampling. Data analysis was done using SPSS's frequencies and percentages; means and PLCC. Findings revealed that majority of the respondents were female, falling in the age bracket of 24 - 30 years, with bachelor's degree, and experience between 2 - 5 years. Also means showed a very satisfactory level of credit control systems and satisfactory level of financial performance in Fina Bank Uganda Limited. PLCC revealed a positive and significant relationship between Credit control systems and financial performance in Fina Bank while regression analysis showed that credit control contribute 52% to deviation in financial performance. Basing on the above findings, the researcher made the following recommendations: (i) Manufacturing firms need to install automatic methods of inventory management and use bin cards to improve their efficiency and effectiveness; (ii) internal control system be strengthened i.e authorization, physical checking, and dispatch of goods should be controlled to ensure proper management of inventory management; (iii) firms should control costs in order to minimize the losses and (iv) firms should keep the price/earnings ratio of the organization high in order to optimize the credit controls .
