Foreign Exchange Risk Management and Business Performance of Selected Manufacturing Companies in Nigeria (Published)
In Nigeria’s manufacturing sector, the perpetual fluctuations in the naira’s value, combined with the country’s heavy reliance on imported goods such as raw materials, equipment, and technological advancements, have catapulted foreign exchange risk to the forefront of concerns. This research delves into the impact of mitigating foreign exchange risk on the success of a group of Nigerian manufacturing companies, with a particular emphasis on three critical aspects: the effects of exchange rate changes on international transactions, financial statements, and the broader economy. The study’s objective was to uncover how these factors interplay with financial performance, operational efficiency, and competitiveness. To achieve this, the research employed a retrospective design, gathering data from the audited financial statements of 15 manufacturing firms listed on the Nigerian Exchange Group between 2020 and 2024. Supplemental data was sourced from the Central Bank of Nigeria and the National Bureau of Statistics, providing a comprehensive dataset. The analysis utilized panel regression, with the Hausman test serving as a guide to determine the most suitable model. The results revealed a significant correlation between adept foreign exchange risk management and enhanced business outcomes. Notabll, strategic management of transaction and economic exposure yielded substantial benefits for firm performance, whereas managing translation exposure had a pronounced positive effect on operational efficiency. Ultimately, the study affirms that proactive management of foreign exchange risk is pivotal in enabling firms to navigate economic turbulence while maintaining profitability, cost control, and a competitive edge. In light of these findings, the research advises manufacturing companies to establish robust treasury management practices, leverage available risk-mitigation tools, and prioritize accurate exchange rate forecasting to minimize the adverse effects of currency volatility.
Keywords: Business Performance, Manufacturing Companies, Nigeria, Risk Management, economic exposure, foreign exchange risk, hedging, transaction exposure, translation exposure
Ownership Structure and Performance of Selected Quoted Manufacturing Companies in Nigeria (Published)
This study evaluated the effect of equity ownership structure on the financial performance of selected quoted manufacturing companies in Nigeria. The focus of the evaluation is on the relationship between ownership structure variables (managerial, institutional and foreign) on firm performance (Return on Equity and Return on Asset). Data were collected for this study through secondary source for the period 2011 – 2020. 60 manufacturing firms listed on the Nigerian Stock Exchange were purposively sampled. Data were collected on variables such as institutional owners’ equity, managerial ownership equity, foreign ownership equity, Total Assets, shareholders’ fund and earnings after interest and tax will be collected from the Annual Reports of the companies. Data collected will be analyzed using tables, descriptive statistics, correlation and regression analysis. Also, the data collected were subjected to pooled General Least Square, Random and Fixed Effects regression model in testing the hypotheses of the study. It was discovered that all the variables i.e. (ROTA, ROE, MON, LEV, LASSET, ION, FON and AGE) had correlation coefficients that were very low and they are less than 0.9 having either positive or negative values. It was discovered that all the series show a high level of consistency being that their mean and median values are within the maximum and minimum values of the series. Too the deviation of the actual data from their mean value are exceptionally high, typically demonstrated by the relatively high value of the standard deviations. The study recommended that improvement should be made on corporate governance to focusing on sound equity ownership structure in order to attract foreign investors. Likewise, Industrial investors should emphasize the importance for the inclusion of institutional investors inclusion in companies,’ ownership structures and collision between the directors and dominant shareholders should be prevented.
Keywords: Manufacturing Companies, Nigeria, Ownership Structure, Performance
Corporate Governance Practices and Working Capital Management Efficiency: Special Reference to Listed Manufacturing Companies in Sri Lanka (Published)
The main objective of the study is to find out the significant difference between corporate governance practices on working capital management efficiency in listed manufacturing firms in Sri Lanka. Secondary literature reviews and Secondary data collection methods were used to conduct the study. Twenty five listed manufacturing firms were selected as sample size in Colombo Stock Exchange for the periods 2007, 2008, 2009, 2010 and 2011. Independent sample one – way Anova (f-test) and Independent sample t-test have been utilized to find out the significant difference between corporate governance practices on working capital management efficiency. The results revealed that there is no significant mean different between the levels of working capital management efficiency among corporate governance practices as board committees, board meetings and proportion of non executive director except board leadership structure. Based on the findings, we recommended that the effective policies in the working capital management must be formulated through the corporate governance practices in the listed manufacturing firms in Sri Lanka.
Keywords: Corporate Governance Practices, Manufacturing Companies, Working Capital Management Efficiency