West Science Social and Humanities Studies
Vol. 3 No. 03 (2025): West Science Social and Humanities Studies

The Effect of Hedging Strategy, Exchange Rate Fluctuations, and Credit Risk on the Financial Stability of Multinational Companies in Jakarta

Judijanto, Loso (Unknown)
Kaswoto, Junet (Unknown)
Febrina, Ilza (Unknown)

Article Info

Publish Date
28 Mar 2025

Abstract

This study investigates the impact of hedging strategies, exchange rate fluctuations, and credit risk on the financial stability of multinational companies in Jakarta. Employing a quantitative approach, data were collected from 140 respondents using a Likert scale (1–5) and analyzed using Structural Equation Modeling - Partial Least Squares (SEM-PLS). The findings reveal that all three factors significantly influence financial stability, with exchange rate fluctuations exerting the strongest effect, followed by hedging strategies and credit risk. The results underscore the importance of robust financial risk management practices in mitigating external uncertainties and ensuring corporate sustainability. This study offers valuable insights for corporate managers and policymakers in fostering financial resilience amidst volatile market conditions.

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Journal Info
West Science Social and Humanities Studies
Website

Abbrev

wsshs

Publisher

Westscience Press

Subject

Humanities Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice Public Health Social Sciences

Description

West Science Social and Humanities Studies is an academic journal that focuses on interdisciplinary research in the fields of social science, science, and humanities studies. The journal aims to present high-quality articles that make significant contributions to our understanding of society, ...