Journal of Economic Development and Village Building
Vol. 2 No. 1 (2024)

THE INFLUENCE OF FIRM SIZE, LEVERAGE AND PROFITABILITY ON HEDGING DECISIONS IN COMPANIES REGISTERED CONSUMPTION GOODS INDUSTRY ON BEI FOR THE 2021-2022 PERIOD

Sri Handayani (Universitas Mercu Buana)
Diana Airawaty (Universitas Mercu Buana, Yogyakarta)



Article Info

Publish Date
15 May 2024

Abstract

International trade activities cannot be separated from various risks that may arise in its operations. The risk that often arises in companies that carry out international trade is fluctuating foreign exchange rates. One way to deal with foreign exchange rate risk is by hedging. The aim of this research is to determine the influence of firm size, leverage and profitability on company hedging decisions. This type of research uses quantitative research. The sample is companies in the Consumer Goods Industry Sector listed on the Indonesia Stock Exchange for the 2021-2022 period which were selected using a purposive sampling technique. The data collection method documentation uses methods sourced from the company's official website. The data analysis technique uses logistic regression analysis. The research results show 1) there is no significant influence between firm size on the company's hedging decisions, because the sig value is 0.221 > 0.05; 2) there is no significant influence between leverage and the company's hedging decisions, because the sig value is 0.262 > 0.05; and 3) there is a significant influence between profitability and the company's hedging decisions, shown by a sig value of 0.002 < 0.05.

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Journal Info

Abbrev

jedvb

Publisher

Subject

Decision Sciences, Operations Research & Management Earth & Planetary Sciences Economics, Econometrics & Finance Environmental Science Industrial & Manufacturing Engineering

Description

This journal contains articles and research results. The scope of the research includes: general economics and teaching, public economic, law and economics, building village, economic village, Business admiration and business economics: marketing, accounting; personel ...