PENGARUH LEVERAGE, FINANCIAL DISTRESS, DAN LIKUIDITAS TERHADAP KEPUTUSAN HEDGING PADA PERUSAHAAN MANUFAKTUR

Abstract

The Company will always encounter the risks in every activity it does so it requires the existence of risk management. One of the risks that companies will face if they are going to do international trading is the risk of foreign exchange rate fluctuations so that firms need to hedge to deal with those risks. Hedging is something the company does to protect the company from foreign exchange exposure. The purpose of this research is to know and analyze the influence of leverage (LEV), financial Distress (FD), and liquidity (Lq) to hedging decision (H). The population in this research is the manufacturing company which listed on the Indonesian stock exchange of 2011-2015 period. The sample in this research amounted to 21 company samples by using purposive sampling in accordance with predetermined criteria. The independent variables in this research are leverage, financial distress, and liquidity as well as with dependent variable of hedging decision. The method of analysis used is logistic regression analysis with α = 5%. The results of this research indicates if leverage has a positive influence it is not significant on hedging decisions. Financial distress variables have a positive and significant influence on hedging decisions. Another variable that is liquidity has a significant negative influence on hedging decision.
Keywords: decision on hedging, leverage, financial distress, liquidity, derivative instruments.