Market Risk and Earnings Capacity of Agricultural Firms in Nigeria (Published)
The study investigated the effect of Market risk on the performance of Agricultural firms in Nigeria for the period 2014 to 2018. Three objectives were formulated and the study employed Cause-effect research design using secondary data collected from CBN statistical bulletin and financial statement of the firms. Descriptive statistics and panel data analysis were adopted in analyzing the data gathered. Hausman test was used to choose the best estimates between fixed effect and random effect. The results show that interest rate change and exchange rate change have positive and significant effect on firm performance, while commodity price change effect was negative and also significant.. The study therefore recommends among others that government should ensure a favourable and more stable interest rate to a point that it could be attractive to foreign and local investors as it is an indicator of a stable economy.
Citation: Stella Nonye Agubata and Augustine Chukwujekwu Odubuasi (2021) Market Risk and Earnings Capacity of Agricultural Firms in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.9, No. 9, pp.30-40
Keywords: Firm Performance, commodity price risk, exchange rate risk, interest rate risk