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A Dual-Measurement Approach to Corporate Foreign Exchange Exposure in Indonesian Non-Financial Firms, 2020–2024 Yunni Angela Yustisia; Ernie Hendrawaty; Igo Febrianto
Jurnal Locus Penelitian dan Pengabdian Vol. 5 No. 8 (2026): JURNAL LOCUS: Penelitian dan Pengabdian
Publisher : Riviera Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58344/locus.v5i8.6026

Abstract

How corporate foreign exchange exposure is measured can change what a study concludes. This paper compares two measures of exposure for Indonesian non-financial firms over the high-volatility period 2020 to 2024: the absolute FX beta, which captures the magnitude of exposure, and the signed FX beta, which captures its direction. FX beta is estimated firm-by-year from weekly returns in a two-factor market model for a panel of 30 firms and 150 firm-year observations. Each measure is then regressed on foreign currency debt, derivative use, export intensity, the debt-by-export interaction, and firm controls, with panel diagnostics selecting pooled OLS and White diagonal standard errors. The two measures give different results from the same data. Under the magnitude measure, only derivative use significantly lowers exposure (-0.3776; p = 0.009). Under the signed measure, export intensity is positive and significant (1.2916; p = 0.091), which identifies a transactional-gain channel for commodity exporters that the magnitude measure hides. The study concludes that exposure research in commodity economies should report both measures, because the absolute value alone discards information on which firms gain and which lose from currency movements.
Co-Authors Abubakar, PhD, Adam Muhammad Adam Muhammad Abubakar, PhD Ahamad, Arifin Ahmad Faisol AHMAD FAISOL Amalia Ratna Sari Amalia Ratna Sari Amarta, Ni Wayan Della Ananda, Riri Gusnia Arivina Ratih Yulihar Taher Arpan Fadly Harahap Audrey, Relifidi Ayu Pita Winarti Ayuni Putri, Lidya Banuwa, Laili Fadhilla Cindy Melia Farahdiba Dalimunthe , Nindytia Puspitasari Desmi, Muhammad Farhan Edi Pranyoto Effendi, Dicky Rizky Ramadhan Fajrin Satria Dwi Kesumah FEBRIAN, ANGGA Febrianto, Igo Fidelys Grecia Hutabarat Hardman Satria Harsono Edwin Puspita Helmi Romadhon HERU WAHYUDI Himawan Nur Arifin Huzaimah, Raden Ayu Fiska Igo Febrianto Kamadie Sumanda Syafies Kamadie Sumanda Syafis Kamilia Syaputra Karim, Mirwan Komalasari, Agrianti Kurniasari, Florentina Laili Muslihah Lia PURNAMASARI Lidya , Lidya Ayuni Putri Lidya Ayuni Putri Lis Andriani Lis Andriani, Lis Liza Alvia Mahatma Kufepaksi Mahrinasari, Mahrinasari Mawarni, Resky Cyntia Maya Angela Natalia Mela Febrina Mohammad Bin Abdullah Mohd. Lokman Muhammad Arizal Muhammad Iqbal Muslimin Muslimin Nairobi Nindytia Puspitasari Dalimunthe Nurdiono Nurdiono Octaviana, Lisa Tyas Pranyoto, Edi Puspitasari D., Nindytia Putra, Budi Kirana Putra, Ridho Ramadhio Putri, Lidya Ayuni R. Ribhan R.A Fiska Huzaimah Revita Romadhoni Rialdi Azhar Rika Permatasari, Rika Risda Marvinita Risda Marvinita Rizani, Anisa Aulia Rosa Fitri Sakinah, Tazkiyah Salsabila Sonia Sari Indah Oktanti Sembiring Shofia Ainunnisa Siti Normah binti Awang Tuah Skolastika Elvira Emma Riyadi Sri Hasnawati Sri Hasnawati Sri Hasnawati Sri Hasnawati Sri Suningsih Sumanda Syafis, Kamadie Suningsih, Sri Susi Sarumpaet Syaharani Noer Fathia Syifa Fadiah Adlina Tata Persada Vina Medya Oktaviani Widjoyo, Stephen Suryo Willy Abdillah Winia Waziana Y.S. Soefian Nur Hidayat Yuningsih Yuningsih Yuningsih Yuningsih Yunni Angela Yustisia Zunaidah bin Abdul Hasan