Abstract

The research aims to determine and analyse the effect of leverage, liquidity, profitability, and firm size on hedging decisions. The population in this research is state-owned enterprise companies listed on the Indonesian Stock Exchange for 2019–2022. The sample was determined using a purposive sampling technique, so the sample obtained was 13 companies. The data used in this research is secondary data obtained from financial statements or the annual report on the official website of IDX and the relevant company website. The data analysis technique is logistic regression analysis with the IBM SPSS Statistics version 21 application. The results show that the leverage proxied by the debt-to-equity ratio (DER) has a significant positive effect on hedging decisions. Meanwhile, the liquidity proxied by the current ratio (CR), the profitability proxied by the return on assets (ROA), and the firm size proxied by total assets have no effect on hedging decisions.

Keywords:

Hedging, Leverage, Liquidity, Profitability and Firm Size

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