Foreign Exchange Risk management And Performance of Forex Bureaus in Kampala: A Case Study of ABC Forex Bureau
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Date
2014-04
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management
Abstract
The main aim of this study is to empirically examine the relationship between foreign exchange
risk management, human capital and financial performance of ABC Forex bureaus in Kampala.
drawn from literature, independent variables namely foreign exchange risk management and
human capital will be formulated to link each research question per relationship and joint effect
and Performance. The research motivation will be the unstable financial performance in sales
volume and profitability of ABC Forex bureaus within Kampala.
the cross sectional, correlational and descriptive study designs will enable the conceptual
framework in the deliberate survey and will ease a structured interview schedule for data
collection using proportionate stratified and purposive sampling on 103 firms. This caused a
response rate of 90.3 percent (n=93 ). Statistical Package for Social Scientist (SPSS) Version 17
tested for descriptive, rotated component, correlation, multiple regression and Variance analysis
findings show significant factor inter-correlations between dimensions. PearsonĀ· s correlation
coefficient (r) revealed that Foreign Exchange Risk Management proved a stronger positive
association and predictor effect than the moderate Human Capital with regard to Financial
performance. In addition, a multiple regression test showed a joint positive impact of 16.6
percent by both human capital and foreign exchange risk management to predict the financial
performance. This significantly proved the conceptual and research literature.
management insights and improvements on the indirect role of human capital and foreign
exchange risk management can boost competitive advantage to better financial performance.
Forex bureaus should endeavor procedural reforms in operations, in-house training, optimal
Forex strategies, networking and needs assessment for firm specific human capital.
key words: Foreign Exchange Risk Management, Human Capital, Financial Performance.
Description
A Dissertation Submitted to the College of Applied Economics and Management Science in Partial Fulfillment for the Award of a Bachelor Degree in Business Administration of Kampala International University
Keywords
Foreign Exchange Risk management, Forex Bureaus, ABC Forex Bureau