FAKTOR-FAKTOR YANG MEMPENGARUHI KEPUTUSAN HEDGING PADA PERUSAHAAN MANUFAKTUR

Abstract

The changes of foreign exchange which is unpredictable will have an impact to the sales, price and
exporter and importer profit. The hedging strategy which has been carried out by companies on their
financial transactions, derivative instrument is one of the alternatives which has important role in
capital market. The other internal factors which give influence to a company to conduct hedging
activity i.e. financial distress. A company which has an indication of bankruptcy from the calculation
of financial distress will force the management to protect their company from many kinds of risk
including market risk by conducting the hedging activity. This research is meant to analyze the
influence of Market to book value, Liquidity, Leverage, Growth Opportunity, and Financial distress to
the Hedging decision on manufacturing companies which are listed in Indonesia Stock Exchange. This
research is a causal comparative research. The samples are 21 manufacturing companies which are
listed in Indonesia Stock Exchange in 2010-2015 periods which
has been selected by using the
purposive sampling technique. The data analysis technique has been carried out by using logistic
analysis. The result of the research shows that Market to Book Value and Liquidity does not give any
influence to the hedging decision whereas leverage, growth opportunity, and financial distress give
influence to the hedging decision on manufacturing companies which are listed in Indonesia Stock
Exchange.

Keywords: Market to book value, liquidity, leverage, growth opportunity, financial distress, hedging
decision.