Analysis of Factors Affecting Hedging Decision Making (Study in Pharmaceutical Sub-Sectors Listed in Indonesia Stock Exchange, 2009-2018)

Abstract

This study aims to analyze the influence of the factors affecting hedging decision making (study on the pharmaceutical sub-sector listed on the Indonesian Stock Exchange 2009-2018). In conducting this research, the writer uses quantitative research methods with casual approaches. This study uses secondary data, namely annual financial report data published by pharmaceutical companies listed on the Indonesia Stock Exchange (IDX). The population used in this study were pharmaceutical companies listed on the Indonesia Stock Exchange in 2009-2018. The sampling technique in this study was purposive sampling and according to the predetermined criteria, it was obtained 4 sample companies from 10 populations who had data to be studied. This study uses a logistic regression model. The results of this study indicate that firm size has a positive and significant effect on hedging decisions, Profitability has a positive and significant effect on hedging decisions, liquidity has a negative and significant effect on hedging decisions, and leverage has a positive and significant effect on hedging decisions.

Keywords: hedging decision, firm size, profitability, liquidity, leverage

DOI: 10.7176/RJFA/12-12-04

Publication date:June 30^th 2021