EFFECT OF TRANSLATION OF CURRENCY ON THE PROFITABILITY OF FOREIGN COMPANIES IN NIGERIA (2009 – 2018)

EFFECT OF TRANSLATION
OF CURRENCY ON THE
PROFITABILITY OF FOREIGN
COMPANIES IN NIGERIA (2009 –
2018)
Ezuwore-Obodoekwe, Charity N.
Department of Accountancy
Faculty of Business Administration
University of Nigeria,
Enugu Campus(UNEC)
charity.ezuwore@unn.edu.ng
Okeke-Muogbo, Gloria. N.
Department of Accountancy, Federal
Polytechnic Oko, Anambra State.
deaconessnneka@gmail.com
Elias Igwebuike Agbo
Department of Accounting & Finance,
Faculty of Management & Social Sciences,
Godfrey Okoye University, Enugu .
agboelias@ymail.com
OKAFOR, CLARA NKEM
Department of Accountancy, Federal
Polytechnic Oko, Anambra State.

okaforpett@gmail.com
ABSTRACT
This study examined the effect of translation
of currency on the profitability of foreign
companies in Nigeria from 2009 to 2018.
The study specifically examined; the effect
of accounts payables on the net income of
foreign companies operating in Nigeria, the
effect account receivables on the net
income of foreign companies operating in
Nigeria. Ex-post facto research design was
employed in the study by relying on
secondary data obtained using annual report
and accounts of Shavron and UAC Plc for a
period of ten (10) years spanning through
2009-2018. Multiple regression analysis was

used in the analysis. Result of the analysis
showed that accounts payable has negative
significant effect on the net income of
foreign companies operating in Nigeria.
Again, the result showed that account
receivable has significantly positive effects
on the net income of foreign companies
operating in Nigeria. These indicate that a
one naira change in account payable will
decrease Net Income of foreign companies
operating in Nigeria and a change in account
receivable will increase Net Income of
Foreign companies operating in Nigeria. It is
therefore advised that Government should
grant tax incentive to foreign companies
operating in Nigeria also encourage the
made in Nigeria products by removing the
exportation duties in order to increase
exportation of Nigerian products.

Keywords: Translation, Currency,
Profitability, Foreign, Companies and
Nigeria.

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