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Journal : PERFECT EDUCATION FAIRY

Determination of Hedging Decisions for Public Companies Registered on the Jakarta Islamic Index in 2019-2022 Sukmawati, Frisca Novia; Yusuf , Muhammad
PERFECT EDUCATION FAIRY Vol. 1 No. 4 (2023): PERFECT EDUCATION FAIRY
Publisher : PT. Batari Edu Calya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.56442/pef.v1i4.830

Abstract

Transactions involving different currencies when companies do international trade can create financial risks caused by changes in the exchange rate of a currency. To overcome this risk, company can do hedging. The purpose of this study to examine the effect of leverage, liquidity, and profitability on hedging decisions. The data used in this study is secondary data obtained from the annual financial statements of companies listed on the Jakarta Islamic index. Sampling using purposive sampling method. The number of samples in this study were 7 companies that met the criteria. The data analysis method used is logistic regression with the SPSS application. The test results show that leverage, liquidity, and profitability have a no effect on hedging decisions.