Effect of Exchange Rate Fluctuation on Firm Profitability: Evidence from Selected Quoted Conglomerates in Nigeria
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2018, Vol 8, Issue 12
Abstract
The main aim of this study is to find out the effect of exchange rate fluctuation on the firm profitability of selected quoted conglomerates in Nigeria. Specifically, it investigated the extent to which exchange rate fluctuation affect return on capital employed. In pursuit of the objectives of this study, two hypotheses were formulated and tested using secondary data obtained from the firms’ annual report and CBN annual statistical bulletin. Data were analyzed using multiple regression analytical estimation technique with the aid of SPSSv21 which was used in determining the effect of exchange rate fluctuation on firm profitability. The findings confirmed that the two hypothesis tested were insignificant. Therefore, the researcher recommends that Government should uphold the restriction policy on the importation of similar products manufactured in Nigeria. If this is religiously pursued, it will create and open more markets for the locally manufactured goods to thrive. Also Government should make policy that aims at naira appreciation against foreign exchange which will greatly help reduce the cost of production in the manufacturing sector.
Authors and Affiliations
E. M. Okika Christian, N. P Udeh Francis, Okoye Greg. O
Keywords
Related Articles
- EP ID EP584684
- DOI 10.6007/IJARBSS/v8-i12/5154
- Views 59
- Downloads 0
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