Determining Factors by using Hedging Policies Derivative Instruments in Non-Financial Companies in Indonesia
Journal Title: International Journal of Social Science Humanity & Management Research - Year 2022, Vol 1, Issue 06
Abstract
The purpose of this study is to examine the determinants of hedging policy in manufacturing companies listed on the Indonesian Effect Exchange. The determining factors tested in this study are financial distress, market to book value of equity, and liquidity against the company's hedging policy with foreign currency derivative instruments. The proxy used to measure financial distress is the debt-to-equity ratio (DER). Market to book value of equity (MBVE) is usually to measure firm value and current ratio as a proxy for liquidity. This study uses panel data. The study was conducted on 41 companies and 246 observations during the period 20102015. This study used a logistic regression model. The results showed that financial distress, firm value, and liquidity had a significant influence on hedging policy. The results of testing on the second hypothesis, financial distress affected. positive and significant impact on hedging policies in public companies listed on the Indonesian Stock Exchange. The test results on the second hypothesis, firm value have a positive and significant effect on hedging in public companies listed on the Indonesian Stock Exchange. The test results on the third hypothesis, liquidity has a negative effect. and significant to the hedging policy of public companies listed on the Indonesia Stock Exchange.
Authors and Affiliations
Yusbardini
Keywords
Related Articles
- EP ID EP712617
- DOI -
- Views 50
- Downloads 0
Implementation of Independent Learning according to the Views Ki Hadjar Dewantara in Establishment Pancasila Student Profile
Education is one of the basic human rights. Because humans are human beings who are gifted with reason, humans need education in the process of their lives. The idea of independent learning is a very good idea where the...
Ecuador, Caught between extortionists and Terrorism
Ecuador finds itself at a dangerous crossroads, caught between the growing threat of extortionists and terrorism, creating an environment of fear and uncertainty for its citizens. Extortion, perpetrated mainly by crimina...
The Influence of Compensation, Competency, and Work Environment on Employee Performance with Work Engagement as a Moderating Variable at DPRKPP of Surabaya
This study aims to determine and analyze the effect of compensation (X1), Competence (X2), Work Environment (X3) and The Work Engagement (Z) on Employee performance (Y) of honorary employees at The Surabaya Public Housin...
Factors Affecting the Intention to Use Green Logistics Platform: Research at Military Telecommunication Group (Viettel) - Viettel Logistics
In recent years, business platform has been rapidly developing in the Vietnamese market, appearing in various sectors such as transportation, connecting drivers and customers, or in the e-commerce sector, linking sellers...
Effect of Firm Size on Financial Performance of Listed Deposit Money Banks in Nigeria
This study examined the effect of firm size on the financial performance of listed deposit money banks in Nigeria. The research design utilized was the ex-post facto research design. The population of this study consist...