Digital Library: No conditions. Results ordered -Date Deposited. 2024-03-29T15:56:28ZEPrintshttp://digilib.unila.ac.id/images/sitelogo.pnghttp://digilib.unila.ac.id/2018-04-23T08:16:05Z2018-04-23T08:16:05Zhttp://digilib.unila.ac.id/id/eprint/31134This item is in the repository with the URL: http://digilib.unila.ac.id/id/eprint/311342018-04-23T08:16:05ZDETERMINANTS OF HEDGING DECISION WITH DERIVATIVE
INSTRUMENTS IN MANUFACTURING COMPANIES LISTED ON
INDONESIA STOCK EXCHANGE PERIOD 2013-2016The purpose of this study was to determine the effect of Growth Opportunity
(GRWTH), Leverage (LEV), Liquidity (LIQ), Firm Size (SIZE), and Financial
Distress (FND) on hedging decision in manufacturing companies in Indonesia Period
2013-2016. The greatest risk of international trade transactions is risk of fluctuations
in foreign exchange rates. Changes in the value of foreign currency that can
unexpectedly significant impact of the company, therefore the company needs to do a
risk management one of which is the hedging decision with derivative instruments.
The population in this study is a companies listed on Indonesia Stock Exchange
Period 2013-2016. The sample in this study amounted to 98 companies by using
purposive sampling. The variables in this study include Growth Opportunity
(GRWTH), Leverage (LEV), Liquidity (LIQ), Firm Size (SIZE), and Financial
Distress (FND). The analytical tool used is the logistic regression analysis. The result
of this study found that the variable Growth Opportunity (GRWTH), Leverage
(LEV), and Firm Size (SIZE) positively affect hedging decision, whereas for the other
variable Liquidity (LIQ) and Financial Distress (FND) does not affect hedging
decision. From the results of logistic regression found that the variable Growth
Opportunity (GRWTH), Leverage (LEV), and Firm Size (SIZE) can explain hedging
decision by 48.9% while the remaining 51.1% explained by variables outside the
study.
Keywords: Hedging Decision, Derivative Instrument, Growth Opportunity,
Leverage, Liquidity, Firm Size, Financial Distress 1411011146 ZAKIA AGUSTRI ATIKAH zakiaagustri@gmail.com