The Effect Of Leverage, Liquidity, And Company Size On Hedging Decisions In Manufacturing Companies From 2021-2024

Nurul Qomariah (Universitas Tanjungpura)
Juanda Astarani (Universitas Tanjungpura)
Nina Febriana Dosinta (Universitas Tanjungpura)

Al-Kharaj: Journal of Islamic Economic and Business
Vol. 8 No. 4 (2026): All articles in this issue include authors from 3 countries of origin (Indonesi

This study aims to obtain empirical evidence regarding the effects of leverage, liquidity, and firm size on hedging decisions among manufacturing companies listed on the Indonesia Stock Exchange during the 2021–2024 period. The research sample was selected using purposive sampling, resulting in 25 companies with a total of 100 observations. The research data were obtained from the companies’ annual financial reports and analyzed using logistic regression. The results indicate that leverage has a positive and significant effect on hedging decisions, whereas liquidity and firm size do not have a significant effect on hedging decisions. The study concludes that companies with high debt levels tend to engage in hedging activities to minimize the risk of exchange rate fluctuations.