The purpose of this research is to attempt a comparative study of the impact of size on
foreign exchange risk management practices using manufacturing firms in the Western
Region of Melbourne. This is to provide evidence to either support or refute the results
from the other studies conducted whereby large companies and multinational
corporations were used to determine whether size has a significant impact on risk
management practices of a firm.
Specifically, this study investigated the risk management practices in manufacturing firms
using company specific variables identified from the related literature reviewed viz: policy
and responsibility, degree of centralisation, foreign exchange forecasting, risk
management objectives, hedging strategy and policies, and computerisation of risk
management.