Aug 2026· Journal of Accounting and Financial Management· pp. 129· 0 citations
Abstract
In the context of accelerating globalisation and currency volatility, effective foreign exchange (FX)
risk management has become essential for business sustainability and performance. This study
investigates the relationship between FX risk mitigation strategies and key business performance
indicators, focusing on firms operating in four emerging African economies—Nigeria, Ghana,
Kenya, and South Africa. Using a mixed-methods approach, the research integrates survey data
from 108 financial officers and interviews with 20 treasury executives to assess the adoption and
impact of hedging tools, forecasting technologies, and exposure management practices. The
findings reveal that firms employing structured FX hedging instruments and real-time forecasting
tools report significantly higher financial stability, stronger returns on assets, and reduced
earnings volatility. Conversely, firms with unhedged currency exposure, particularly small and
medium-sized enterprises (SMEs), experienced performance deterioration due to depreciation
risks and foreign procurement costs. Regression analysis confirms a positive correlation between
FX risk management practices and financial performance, with technology adoption acting as a
performance-enhancing catalyst. The study concludes that institutionalising FX policies and
expanding access to hedging for SMEs are critical for growth and resilience. These insights offer
practical implications for corporate treasuries, policy makers, and financial service providers
navigating volatile currency environments.
Foreign exchange risk has become one of the most significant financial challenges for organizations involved in international trade, foreign investment, and cross-border financial transactions. Exchange rate fluctuations directly affect import costs, export earnings, profitability, cash flows, and overall business performance. This study examines the emerging trends in managing foreign exchange risk in India by analysing various types of currency risks, modern hedging techniques, derivative instruments, technological innovations, and regulatory developments. A descriptive research design was adopted using both primary and secondary data collected from 100 respondents through a structured questionnaire. For analytical purposes, Multiple Regression Analysis was applied to examine the influence of hedging strategies, technological adoption, and regulatory support on effective foreign exchange risk management. The findings indicate that forward contracts, currency futures, options, swaps, artificial intelligence, digital treasury management systems, fintech solutions, and regulatory initiatives significantly strengthen foreign exchange risk management. The study concludes that technology-driven financial solutions and strategic risk management practices enhance organizational resilience, financial stability, and global competitiveness.
Malle Jayanth Yadav, M. Rajitha· International Journal of Cre...· 0 citations
This study examines how exchange-rate fluctuations, through both asset-side and liability-side exposures, affect the accounting-based performance of Brazilian agribusiness firms listed on B3 over 2020-2025. The analysis draws on a representative sample of 11 firms selected from an updated sector population and evaluates profitability ratios. Quarterly changes in the BRL/USD exchange rate, obtained from the Central Bank of Brazil, constitute the focal independent variable and are related to firm performance using panel-data regressions. The results show that exchange-rate volatility is statistically significant in selected firm-level analyses, yet the aggregate specifications provide no robust evidence of a uniform effect on profitability. This divergence underscores the heterogeneity of exchange-rate exposure and cautions against one-size-fits-all risk policies. Effective currency-risk management therefore requires firm-specific hedging strategies and adaptive financial planning, particularly under heightened macroeconomic and financial uncertainty.
R. Lima· Revista de Estudos Interdisc...· 0 citations
Nigerian investors diversifying into international markets face a significant obstacle in the form
of foreign exchange risk, but there is a startling lack of empirical data on its effects. This study
closes this gap by carefully examining the impact of Naira volatility (NGN/USD, NGN/GBP, and
NGN/EUR) on the risk-adjusted performance of international portfolios. We use comparative
hedging simulations and multivariate regression using monthly data from 2010–2023, which
includes Nigeria’s 2016 capital liberalisation, several currency crises, and the 2023 Naira float.
Key findings show that oil price fluctuations and inflation discrepancies increase losses, and that
a 1% increase in forex volatility lowers real risk-adjusted returns (Sortino ratio) by 0.62% (*p*
< 0.001). Importantly, despite transaction costs, forward contracts through Nigeria's Investors' &
Exporters' window prove to be the best hedge, providing net returns during crises that are 10.8
percentage points higher than unhedged portfolios.
I. Areghan· Journal of Accounting and Fi...· 0 citations
Maintaining strong financial performance has become increasingly challenging for firms amid inflationary pressures, supply chain disruptions, and volatile consumer demand, making efficient liquidity management an important determinant of corporate profitability. This study examines the influence of Working Capital Management (WCM) and Cash Intensity Ratio (CIR) on corporate financial performance, with Firm Age included as a control variable, focusing on consumer cyclicals companies listed on the Indonesia Stock Exchange during the 2023–2024 period. A quantitative approach was employed using secondary data collected from annual financial statements. Purposive sampling produced a final sample of 145 companies, resulting in 290 balanced panel observations, which were analyzed using panel data regression under the Random Effect Model (REM), selected based on the Chow, Hausman, and Breusch–Pagan Lagrange Multiplier tests. The findings indicate that Working Capital Management has a positive and statistically significant effect on Return on Assets (ROA), suggesting that firms with stronger working capital positions tend to achieve higher profitability. In contrast, Cash Intensity Ratio and Firm Age do not exhibit statistically significant effects on financial performance. These results imply that profitability in the consumer cyclicals sector is influenced more by efficient working capital management than by the level of cash holdings or organizational maturity. The study contributes to the corporate finance literature by providing recent evidence from an emerging market and offers practical implications for managers in designing working capital policies that enhance operational efficiency and long-term profitability.
Rizal Indra Tjahya, A. Rahmi· Jurnal Ekonomika Dan Bisnis...· 0 citations
Background: The Chief Financial Officer (CFO) has become a central strategic actor in capital-intensive firms; however, little evidence links CFO risk-taking behaviour to firm performance outside developed markets. This study examines how CFO risk-taking affects corporate financial performance in the Industrial, Energy and Petrochemical sectors of the Gulf Cooperation Council (GCC) countries. Methods: Using 260 firm-year observations (2015–2024) from 26 listed firms, this study measures CFO risk-taking through financial leverage, capital expenditure intensity, earnings volatility, and cash flow volatility, and firm performance through Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS). Panel Fixed-Effects regression and a Vector Autoregression (VAR) model are used to estimate contemporaneous and dynamic relationships, guided by Agency Theory, Upper Echelons Theory and Prospect Theory. Results: CFO risk-taking proxies are significantly associated with ROA: leverage and cash flow volatility reduce ROA, while earnings volatility and capital expenditure raise it. The ROE model is a robust null finding, and EPS evidence is limited to earnings volatility. The VAR results indicate time-varying, exploratory, and dynamic relationships between risk-taking and performance. Conclusions: This study contributes to the literature in three ways: it shifts the analytical focus from the widely studied CEO to the increasingly influential CFO; it provides the first large-scale empirical evidence on CFO risk-taking for the under-researched GCC region; and it operationalises CFO risk-taking through a finer set of proxies than prior work. The findings imply that GCC boards and investors should treat financial leverage and cash flow stability as behavioural risk indicators and that regulators may benefit from encouraging more granular CFO-level risk disclosure.
Sara Almarri, H. El Kaddouri· Journal of Risk and Financia...· 0 citations
This study investigates the empirical relationship between stock price volatility and the
corporate financial performance of listed manufacturing firms on the Nigerian Exchange
Group (NGX) from 2014 to 2024. Using a panel data approach, the study measures financial
performance through Return on Assets (ROA) and Return on Equity (ROE), while stock price
volatility is captured using the Generalized Autoregressive Conditional Heteroskedasticity
(GARCH 1,1) model. Control variables include firm size, leverage and asset growth. Panel
Fixed Effects and System Generalized Method of Moments (GMM) estimation techniques are
applied to control for unobserved heterogeneity and endogeneity. The empirical findings reveal
a significant negative relationship between stock price volatility and both ROA and ROE,
suggesting that equity market instability diminishes corporate performance by increasing the
cost of capital and deterring long-term investment. Firm size exhibits a positive impact while
leverage negatively affects performance. The study recommends that manufacturing firms
adopt robust risk-management frameworks to hedge against market shocks and urges the
Securities and Exchange Commission (SEC) to implement policies that stabilize equity pricing
on the Nigerian Exchange Group.
F. Odey· International Journal of Eco...· 0 citations
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