Effectiveness of risk management practices on foreign currency exposure amongst oil marketing companies in Kenya (Record no. 86632)
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| 000 -LEADER | |
|---|---|
| fixed length control field | 03137nam a22001697a 4500 |
| 003 - CONTROL NUMBER IDENTIFIER | |
| control field | KE-MeUCS |
| 005 - DATE AND TIME OF LATEST TRANSACTION | |
| control field | 20240503124008.0 |
| 008 - FIXED-LENGTH DATA ELEMENTS--GENERAL INFORMATION | |
| fixed length control field | 190403b xxu||||| |||| 00| 0 eng d |
| 040 ## - CATALOGING SOURCE | |
| Original cataloging agency | lcc |
| Transcribing agency | KE-MeUCS |
| 050 ## - LIBRARY OF CONGRESS CALL NUMBER | |
| Classification number | HG4026.M9 2019 |
| 100 ## - MAIN ENTRY--PERSONAL NAME | |
| Personal name | Mwangi, Alex M. |
| 245 ## - TITLE STATEMENT | |
| Title | Effectiveness of risk management practices on foreign currency exposure amongst oil marketing companies in Kenya |
| 260 ## - PUBLICATION, DISTRIBUTION, ETC. (IMPRINT) | |
| Place of publication, distribution, etc | Meru: |
| Name of publisher, distributor, etc | Meru University of Science and Technology, |
| Date of publication, distribution, etc | 2019. |
| 500 ## - GENERAL NOTE | |
| General note | Includes bibliographical references |
| 520 ## - SUMMARY, ETC. | |
| Summary, etc | Kenya being a net importer of oil, the Oil marketing companies (OMC's) are exposed to foreign exchange transactions while purchasing the products either locally from other OMC's or while importing the whole parcel to sell to other importers. In finance literature, many methods are available to manage the currency exposure. How effective are these methods in managing the currency exposure? This study focused on establishing how various methods which are available in financial literature have been used to manage the effect of foreign currency exposure. Specific objectives were to evaluate how each of the three techniques of managing foreign currency exposure, namely external hedging, internal hedging and finally money market hedges have effectively been able to manage the exposure. This study was expected to be of benefit to many stakeholders, including but not limited to oil marketing companies, the government and academicians. The study is supported by various theories that relate the price of goods to changes of exchange rate, these are purchasing power parity, interest rate parity and International fisher effect theory. This study adopted a descriptive survey research design. The study population was finance managers of all the 36 oil marketing firms. The population is in three strata i.e. 3 large, 17 medium and 16 small companies. A census study was adopted since the population is small. Data was collected using a closed ended questionnaire which will be administered using a trained research assistant by dropping it and picking later. The descriptive statistics used included percentages, means, standard deviations and frequencies while correlation was used to measure the association between the variables. The information was then displayed by use of bar charts, graphs, pie charts. Content analysis was used to analyze data that was qualitative in nature or aspect of the data collected from the open ended questions. The study established that the most popular method of currency exposure management was risk sharing, followed by leading and lagging and in the third place was currency diversification. Incidentally, the first three methods were all internal hedging techniques. The least effective method of currency risk management was uncovered money market hedges. This study therefore concludes that the management of oil marketing firms are exposed to currency exposure and it is affecting their performance. The study recommended that the risk management function should be given to an office or a department that is dedicated to risk management |
| 942 ## - ADDED ENTRY ELEMENTS (KOHA) | |
| Source of classification or shelving scheme | Library of Congress Classification |
| Koha item type | Thesis |
| Cataloguer | Mercy Musungu |
| Withdrawn status | Lost status | Source of classification or shelving scheme | Damaged status | Not for loan | Home library | Current library | Shelving location | Date acquired | Total Checkouts | Full call number | Barcode | Date last seen | Price effective from | Koha item type |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Library of Congress Classification | Meru University | Meru University | Open Shelves | 03/04/2019 | HG4026 .M9 2019 | 19-32542 | 03/04/2019 | 03/04/2019 | Thesis |