Determinasi Kepuasan Hedging Dengan Instrumen Derivatif Keuangan

Abstract

This study conducted to see the effect of the company's firm size, leverage, growth opportunity and profitability on the decision of hedging with derivative instruments on manufacturing companies listed on the Indonesian Stock Exchange period 2011-2016. Sample in this study uses 34 companies by using purposive sampling method. This study uses a quantitative approach and data used secondary data. The analytical method used is logistic regression. The results shower that the variable firm size and growth opportunity have a significant positive effect on hedging decision making. The variable leverage and profitability did not influence hedging decision in Indonesian manufacturing companies. This study show that the higher value of firm size will increase the probabilitiy of using hedging activity in manufacturing companies in Indonesia.

The Impact of Managerial Ownership and Financial Performance on Hedging Decisions

“…Based on research conducted by Guniarti (2014), Kurniawan and Asandimitra (2018), and Windari and Purnawati (2019), leverage is projected with variable Debt to Equity Ratio (DER) has a significant positive effect on hedging decisions. In comparison, the results of research from Ahmad and Haris (2012), Mediana and Muharam (2016), and Utami et al (2018) showed that DER variables do not affect hedging decisions.…”

The Effect of Liquidity, Growth Opportunity, and Financial Distress on Hedging Decisions

“…Growth opportunity is an opportunity owned by a company to develop itself in the market (Manova, 2017). According to research conducted by Utami, Sriyanto, and Purbasari (2018), a high company growth opportunity indicates a company's opportunity to enlarge its operations and can make the company maintain its viability. The company needs large funds to finance this growth to take advantage of these opportunities.…”

“…Companies with high growth opportunity indicate that these companies have the profitability to grow and are liked by potential investors. Companies with high growth opportunity tend to carry out more overseas operational activities where companies have to face risks from fluctuations in foreign exchange rates, so companies need to hedge to reduce these risks (Utami, Sriyanto, & Purbasari, 2018). Previous research conducted by Utami, Sriyanto, and Purbasari (2018) stated that growth opportunity proxied by comparing MVE with BVE has a positive influence on hedging decisions.…”

“…Companies with high growth opportunity tend to carry out more overseas operational activities where companies have to face risks from fluctuations in foreign exchange rates, so companies need to hedge to reduce these risks (Utami, Sriyanto, & Purbasari, 2018). Previous research conducted by Utami, Sriyanto, and Purbasari (2018) stated that growth opportunity proxied by comparing MVE with BVE has a positive influence on hedging decisions. This is different from the research of R Br Aritonang, Christina Daat, and Noor Andriati (2018), which states that growth opportunity proxied by a comparison of MVE with BVE does not affect company hedging decisions.…”

Effect of Hedging, Financial Lease, Sales Growth, and Earning Management on Tax Aggressiveness

“…Hedging is a contract designed to protect risks against exchange rates. In general, hedging is a risk management measure carried out by investors or shareholders to minimize or avoid possible losses due to exchange rates, interest rates, stock prices or commodities (Utami et al, 2018;OECD, 2013;Nurhandono & Firmansyah, 2017;Lee, 2017) Tax aggressiveness can be affected by financial leases. Setiani (2016) argues that a financial lease is a type of leasing activity where the lessee (customer) has the right to purchase the leased item.…”