Broken Naira: A Study of the Impact of Exchange Rates Movement in Nigeria
Multinational Corporations involved in international business operations are exposed to movement in the exchange rate. The purpose of this study is to identify the factors that are responsible for exchange rate movements and to assess the impact they have on such organizations using the Nigerian mar...
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| Format: | Article |
| Language: | English |
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IJMADA
2023-03-01
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| Series: | International Journal of Management and Data Analytics |
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| Online Access: | https://ijmada.com/index.php/ijmada/article/view/15 |
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| author | Andrew Pinnock Asim Majeed Paul Bocij Said Baadel |
| author_facet | Andrew Pinnock Asim Majeed Paul Bocij Said Baadel |
| author_sort | Andrew Pinnock |
| collection | DOAJ |
| description | Multinational Corporations involved in international business operations are exposed to movement in the exchange rate. The purpose of this study is to identify the factors that are responsible for exchange rate movements and to assess the impact they have on such organizations using the Nigerian market as a case study. A quantitative research approach and a descriptive ex-post facto research strategy were adopted for this study. During a span of ten years, a sample of exporting and non-exporting sector companies listed in the Nigerian stock exchange are analyzed. The findings revealed that the manufacturing company showed a high level of sensitivity with the movement in the exchange rate to the returns from the firm compared to the non-manufacturing company, and the correlation analysis indicated the inflation and debt levels to be key factors. The results from the study have revealed a significant relationship between some systematic factors and exchange rate movement which can be useful to multinational corporations, government entities, and other key international business stakeholders in Nigeria. |
| format | Article |
| id | doaj-art-b1fb1bc528504c3aa44e62cbcc385f97 |
| institution | Kabale University |
| issn | 2816-9395 |
| language | English |
| publishDate | 2023-03-01 |
| publisher | IJMADA |
| record_format | Article |
| series | International Journal of Management and Data Analytics |
| spelling | doaj-art-b1fb1bc528504c3aa44e62cbcc385f972025-01-20T15:45:31ZengIJMADAInternational Journal of Management and Data Analytics2816-93952023-03-0171210.5281/zenodo.1152756015Broken Naira: A Study of the Impact of Exchange Rates Movement in NigeriaAndrew Pinnock0Asim Majeed1Paul Bocij2Said Baadel3University of UlsterBPP UniversityBPP UniversityMount Royal UniversityMultinational Corporations involved in international business operations are exposed to movement in the exchange rate. The purpose of this study is to identify the factors that are responsible for exchange rate movements and to assess the impact they have on such organizations using the Nigerian market as a case study. A quantitative research approach and a descriptive ex-post facto research strategy were adopted for this study. During a span of ten years, a sample of exporting and non-exporting sector companies listed in the Nigerian stock exchange are analyzed. The findings revealed that the manufacturing company showed a high level of sensitivity with the movement in the exchange rate to the returns from the firm compared to the non-manufacturing company, and the correlation analysis indicated the inflation and debt levels to be key factors. The results from the study have revealed a significant relationship between some systematic factors and exchange rate movement which can be useful to multinational corporations, government entities, and other key international business stakeholders in Nigeria.https://ijmada.com/index.php/ijmada/article/view/15exchange rateforeign direct investmentinterest rate paritynigerian stock exchangepower parity model |
| spellingShingle | Andrew Pinnock Asim Majeed Paul Bocij Said Baadel Broken Naira: A Study of the Impact of Exchange Rates Movement in Nigeria International Journal of Management and Data Analytics exchange rate foreign direct investment interest rate parity nigerian stock exchange power parity model |
| title | Broken Naira: A Study of the Impact of Exchange Rates Movement in Nigeria |
| title_full | Broken Naira: A Study of the Impact of Exchange Rates Movement in Nigeria |
| title_fullStr | Broken Naira: A Study of the Impact of Exchange Rates Movement in Nigeria |
| title_full_unstemmed | Broken Naira: A Study of the Impact of Exchange Rates Movement in Nigeria |
| title_short | Broken Naira: A Study of the Impact of Exchange Rates Movement in Nigeria |
| title_sort | broken naira a study of the impact of exchange rates movement in nigeria |
| topic | exchange rate foreign direct investment interest rate parity nigerian stock exchange power parity model |
| url | https://ijmada.com/index.php/ijmada/article/view/15 |
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