Exchange rate volatility and performance of listed manufacturing companies in ghana
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Date
2023
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Publisher
KNUST
Abstract
The aim of the study was to examine the effect of exchange rate volatility on the performance of manufacturing firms. The study used data from 12 manufacturing firms from 2010 to 2021. The data was quantitative in nature and was gathered from the v annual report of the firms as well as market data from GSE. The study finds there has been a steady depreciation of the Ghanaian cedi against the USD for the 12-year period examined by the study and the highest volatility happened between 2013 and 2014. Using panel regression, the study discovered that profitability was adversely affected by exchange rate volatility However exchange rate volatility's effect on market value was negligible. It is recommended that manufacturing firms use financial instruments such as currency options, futures contracts, or forward contracts to hedge against exchange rate risks. This can help protect the firm's profits and cash flows from sudden fluctuations in exchange rates.
Description
A thesis submitted to the department of accounting and finance, college of humanities and social sciences, in partial fulfillment of the requirements for the degree of master of science in accounting and finance