Effect of exchange rate fluctuations on the financial performance of Nigerian manufacturing firms: Evidence from food, beverage and tobacco Sector
Stella Agubata N, Augustine Odubuasi C
This research study empirically examined the effects of exchange rate on manufacturing firm’s financial performance in Nigeria from 2005 to 2014 fiscal years. Eight companies from food, beverage and tobacco manufacturing companies were sampled using purposive sampling technique. Secondary data were gathered from the companies’ financial statement and Central Bank of Nigeria statistical bulletin. Ex post facto research design was employed and multiple regression analysis was the tool used in the data analysis. The findings indicate that exchange rate and inflation rate have positive effect while interest rate has negative effect though none is significant on the return on assets and return on equity of manufacturing companies in Nigeria. The study recommends among others that Government should provide credits to the manufacturing companies at a zero interest rate to help improve the profitability status of the companies.