Open AccessPENGARUH LEVERAGE, FIRM SIZE, PROFITABIlITAS TERHADAP KEPUTUSAN HEDGING PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA
Author(s) -
Ayuningtyas Putri Saraswati Saraswati,
Ni Putu Santi Suryantini
Publication year - 2019
Publication title -
e-jurnal manajemen
Language(s) - English
Resource type - Journals
ISSN - 2302-8912
DOI - 10.24843/ejmunud.2019.v08.i05.p15
Subject(s) - business , profitability index , debt to equity ratio , stock exchange , leverage (statistics) , nonprobability sampling , proxy (statistics) , econometrics , economics , finance , statistics , mathematics , population , demography , sociology
International trade by multinational company can result in risk borne by the company. Foreign exchange rate fluctuation risk is the biggest rist that affect international trading activity. Therefore to reduce that risk, the company using hedging policy as risk management. This study is aimed to analyse the impact of leverage , firm size, and profitability of the hedging decision using derivative instruments in manufacturing companies listed in Indonesia Stock Exchange in 2013 until 2017. Sampling using purposive sampling techniques and according to the criteria established company obstained 107 sample and 535 dirm year observation. Logistic regression techniques was used to test this research. The result of this study indicates that variables debt to equity ratio as a proxy for leverage has a positive and significant effect on hedging activites, variables Ln(total asset) as a proxy for firn size has a positive and significant effect on hedging activities, and return on asset as proxy for profitability has a posistive and significant on hedging activities.
Key Word: leverage, firm size, profitability, hedging.