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Journal : West Science Interdisciplinary Studies

The Effect of Hedging Strategies on the Financial Performance of Import-Export Companies in Indonesia Purnamasari, Eva; Pradita, Arisha Putri; Arum, Mega; Kaswoto, Junet; Karim, Abdul
West Science Interdisciplinary Studies Vol. 3 No. 11 (2025): West Science Interdisciplinary Studies
Publisher : Westscience Press

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58812/wsis.v3i11.2400

Abstract

This study examines the effect of hedging strategies on the financial performance of import–export companies in Indonesia. Due to the high exposure to foreign exchange fluctuations, firms engaged in international trade increasingly adopt hedging mechanisms to stabilize financial outcomes. Using a quantitative approach, data were collected from 115 respondents through a Likert scale–based questionnaire and analyzed using SPSS version 25. Statistical tests including validity, reliability, correlation, and regression analyses were conducted to evaluate the relationship between hedging strategies and financial performance. The results show that hedging strategies have a positive and significant effect on financial performance. The correlation coefficient (r = 0.642) indicates a strong relationship, while the regression analysis reveals that hedging explains 41.2% of the variation in financial performance. Forward contracts, options, swaps, and natural hedging contribute significantly to improving profitability, liquidity, and cash flow stability. The findings highlight the importance of systematic risk management practices in increasing the financial resilience and competitiveness of import–export companies in Indonesia. This study recommends that firms enhance their financial literacy and adopt more structured hedging policies to effectively mitigate currency risks.
Co-Authors - FACHRURROZIE Abdul Karim Afandi, Adam Akmal, Firdaus Alfiana Alfiana Amaliyah, Erlina Dewi Endah Amelia, Intan Eka Anantadjaya, Samuel PD Anggraini, Kurnia Arif Nasution, Abdillah Arum, Mega Asep Supriadi Ayuwardani, Mellasanti Azizah Azizah Bagus Yunianto Wibowo, Bagus Yunianto Bagus, Muhamad Ikhwan Bayu Setyo Nugroho Bigharta Bekti Susetyo Budi Prasetya Budi, Rahmad Setio Dian Adhetya Arif Endah Purwaningsih Erisa Ayu Waspadi Putri Eviyanti, Novitasari Hadi Prayitno Hafid, Samsudin A. Hasyim, Fatchun Helfia Edial Hendry Frananda, Hendry Hidayatullah, Muhamad Faqih Hidayatullah, Muhammad Faqih Idyaningsih, Nining Indah Setiawati Jasmin, Jasmin Judijanto, Loso Juliani Pudjowati Karim, Sukri Karnowahadi, Karnowahadi Kaswoto, Junet Lestari, Dwi Fajar Luthfia, Irin Mirrah Marhaeni, Sri Muhammad Ismail Muhammad Kamal Nanang Adie Setyawan Nasution, Rizki Alfadilah Nawangwulan, Irma M Nova, Sari Nuraini Nuraini Nurina, Lia Pradita, Arisha Putri Pramaditya Wicaksono, Pramaditya Pramesti, Gilda Pratama, Wilson Candra Teguh Pratiwi, Mona Inayah Prihantarto, Wikan Jaya Q-to Paguno, Ananda Ramadhan, Al Fath Safitri, Maristia Cahya Salsiyah, Sri Marhaeni Sasono, Heri Sekarmelati, Sonea Valensita Siregar, Nurganda Subandi Subandi Sugianto, Efendi Sugiyanta Sugiyanta Sugiyanta Sulistiyani, Endang Suroija, Noor Suroso, Adi Suseno, Bambang Dwi Sutriani, Widia Suwarni, Wa Ode Vratiwi, Septiana Widiasih, Suprapti Widyanti, Dika Vivi Wiedayanti, Destine Fajar Wirabumi, Putu Wulandari, Endang Yabioktabera, Amran Yudi Antomi, Yudi Zaenuddin, Achmad