PENGARUH LEVERAGE, LIQUIDITY DAN FIRM SIZE TERHADAP KEPUTUSAN HEDGING PADA PERUSAHAAN PERTAMBANGAN DI BEI

Abstract

The International trade that is applied by the company causes fluctuation risks of the exchange rate. Therefore, hedging is required to minimize those risks. This research aimed to find out and analyze the effect of leverage, liquidity, and firm size on the hedging decision. Leverage was measured by Debt to Equity Ratio (DER), liquidity was measured by Current Ratio (CR), firm size was measured by ln total aset, and hedging was measured by a dummy variable. Moreover, the research was quantitative. The population was 22 mining companies listed on the Indonesia Stock Exchange (IDX). Furthermore, the data collection technique used purposive sampling i.e., a sample selection with determined criteria. In line with that, there were 11 mining companies as the sample. Additionally, the data were taken for 5 years (2018-2022). The data analysis technique used logistic regression with the SPSS program 26 version. In conclusion, the result showed that both leverage and firm size had a positive and significant effect on hedging decisions. On the other hand, liquidity had an insignificant effect on edging decisions.