THE EFFECTS OF MANAGEMENT OF ACCOUNTS RECEIVABLES ON THE PERFORMANCE OF PUBLIC CORPORATIONS(A CASE STUDY OF NEPA)

ABSTRACT : This research titled, ‘the effects of the management of accounts receivables on the performance of public corporation” was aimed at finding out all the factors that affect the level of receivable of public corporation reasons behind the huge amount of debts being owed this corporation and most importantly how the combine effects of these factors affect their performances generally. This in line with the reasoning that the issue of the receivables and the problems usually arising from its poor management does not in any way exclude public corporation since most of them as well provide services on credit. The research itself was designed to be descriptive, consequently, the survey research approach was adopted. Based on this public corporation the National Electric Power Authority (NEPA) were randomly selected as the sample. The sample size consisted of two hundred and ninety persons chosen from the three hundred customers to whom questionnaire were administered and also one hundred and twelve persons chosen from the one hundred and twenty employees of the sample co-operation to whom questionnaires were administered also in addition two different sets of questionnaire were designed for this study. While one as administered to the customers of the sample corporation, the other was administered to the employees. Subsequently, information collected wee analysed using tables and simple percentage. Additionally, the chi-square dist and co-efficient of correlation were used in testing the hypothesis formulated in order to prove or disprove them after which the findings from the study were summarized and conclusions drawn from them.        The study showed that such factors as, the rates being charged for this corporations’ services the billing system the general economic situation in the country and the working conditions of the staff are some of the factors that influence receivables of public corporation. It was further discovered that inefficient management of receivables by public corporation directly and indirectly lead to such problems as illiquidity, irregular payment of workers salaries and other entitlements, employees less of motivation and high labour turnover all of which affects the per of public corporation negatively. However, in view of the findings made from the study and conclusion drawn there from that how public corporation manage their receivables grossly affect their performance either directly or indirectly in the forms mentioned above, some recommendations were made in chapter five of this report and it is hoped that these recommendations are adhere to, there will be significant and justifiable improvements directly on their performances most especially in Enugu district and then the nation as a whole.

TABLE OF CONTENT

CHAPTER ONE: INTRODUCTION

1. Background of the study                                                                    1
2. Statement of the problem                                                       3
3. Purpose of the study                                                               5
4. Significance of the study                                                                    6
5. Formulation of hypothesis                                                      7
6. Scope and limitations of the study                                         8
7. Definition of terms                                                                 9
8. Information of the case studies.                                                         11
9. Brief historical background of NEPA                                                11
10. Brief historical background of water corporation                   11

CHAPTER TWO: LITERATURE REVIEW

1. The concept of accounts receivable                                        14
2. Observation of accounts receivable                                        17

CHAPTER THREE: RESEARCH METHODOLOGY

1. Research design                                                                                  27
2. Description of population                                                       28
3. Method of data collection                                                      28
4. Sample size                                                                                         29
   1. Administration and retrieval questionnaire                             29
5. Description of questionnaire                                                   31
6. Method of data analysis                                                                     32
7. Method of testing hypothesis                                                             32

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

1. Objective one                                                                          33
2. Objective two                                                                                     41
3. Objective three                                                                                    45
4. Test of hypothesis                                                                               49
   1. Test of hypothesis one                                                                        50
   2. Test of hypothesis two                                                                        53
   3. Test of hypothesis three                                                                      55