Analysis of risk among agribusiness enterprises investment in Abia State, Nigeria

Type Journal Article - Journal of Economics and International Finance
Title Analysis of risk among agribusiness enterprises investment in Abia State, Nigeria
Author(s)
Volume 3
Issue 3
Publication (Day/Month/Year) 2011
Page numbers 187-194
URL http://www.academicjournals.org/journal/JEIF/article-full-text-pdf/5A365404738
Abstract
The study analysed risk among agribusiness enterprises investment in Abia State of Nigeria.
Specifically, it examined types of risk and the degree of influence on the agribusiness enterprises. The
study also examined common risk reducing strategies among the agribusiness enterprises in the area.
Primary data collected from 40 formal agribusiness firms were used in the study. The data were
analysed with w-statistics and validated with Pearson criterion (?
2
). The result indicated a w-statistics of
0.79. The result was verified by Pearson criterion and this gave ?
2
calculated value of 4.81 which is
lower than table value of 11.07 at 5% significant level. The result revealed that risk sources affecting
agribusiness investment were financial, marketing, currency and production in that order. The common
risk reducing strategies were diversification, integration, forward contracting, and insurance, among
others. Based on this, it was recommended that government should make policies that will encourage
investors adopt the highlighted risk reducing strategies in risk management.

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