Valutni rizik u metalnom sektoru Bosne i Hercegovine
EXCHANGE RATE RISK IN METAL SECTOR OF BOSNIA AND HERZEGOVINA

Summary/Abstract: The paper analyzes different aspects of foreign exchange risk in the most significant export sector in Bosnia and Herzegovina, which is the metal sector. The research aims to establish if firms in the metal sector face foreign exchange risk, and if they use risk protection instruments or not. Additionally, the study looks into the possibility of a connection between certain firm-specific characteristics (such as firm size, the firm subcategorization within metal sector, and the average share of export within the total firm revenue) and foreign exchange risk expressed through occurrence of exchange differences in financial reports. The study employs statistical methods, that is descriptive and inductive statistics, nonparametric and parametric statistical tests such as χ2-test (for independence of two attributes), F-test and t-test of the difference between the two population means. The research shows that the share of exports makes about 90% of the revenue in over a half of the firms in the sample. Despite that, the level of foreign exchange risk management, expressed through the implementation of risk protection instruments, is low, regardless of firm size. The findings show no statistically significant difference in occurrence of exchange differences among different firms of BiH metal sector in relation to their size, subcategorization within the metal sector and average share of export in their total revenue.

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