The Influence of Market To Book Value, Growth Opportunities, Financial Distress and Interest Coverage Ratio on Hedging Decisions in Indonesian Manufacturing Companies in 2014-2018-Reference-Cited by-同舟云学术

The Influence of Market To Book Value, Growth Opportunities, Financial Distress and Interest Coverage Ratio on Hedging Decisions in Indonesian Manufacturing Companies in 2014-2018

Published:2021-12-24 Issue: Volume:5 Page:
ISSN:2714-7444
Container-title:Academia Open
language:
Short-container-title:acopen

Author:

Diana Mitha Rachma,Sriyono Sriyono

Abstract

This study aims to determine the effect of Market to Book Value, Growth Opportunities, Financial Distress and Interest Coverage Ratio on Hedging Decisions in Indonesian Manufacturing Companies. This study uses a quantitative method and the object of this research is a population and a random sample (purposive sampling), namely 60 Indonesian manufacturing companies listed on the Indonesia Stock Exchange in 2014-2018. The type of data used in this study is secondary taken from the company's annual report for the 2014-2018 period. The data analysis technique uses logistic regression method using the Eviews 9 program. The results of this study indicate that simultaneously the variables of Market to Book Value, Growth Opportunities, Financial Difficulties and Interest Coverage Ratio have an influence on Hedging Decisions. Meanwhile, partially Growth Opportunities, Financial Distress and Interest Coverage Ratio have a significant effect on Hedging Decisions. Meanwhile, Market to Book Value has no significant effect on Hedging Decisions.

Publisher

Universitas Muhammadiyah Sidoarjo

Subject

General Medicine

Reference14 articles.

1. Repie, R. R., & Sedana, I. B. 2015. Kebijakan Hedging Dengan Instrumen derivatif Dalam Kaitan Dengan Underinvestment Problem Di Indonesia. Jurnal Manajemen Vol. 4 No. 2 .

2. Ahmad, N., & Haris, B. 2013. Factors for Using Derivatives: Evidence From Malaysian Non-Financial Companies . Research Journal of Finance and Accounting Vol. 3 No. 9.

3. Aditya, T. A., & Asandimitra, N. 2019. Pengaruh Leverage, Likuiditas, Market to book value, Financial Distress dan Firm Size Terhadap Keputusan Hedging Sektor Consumer Goods Industry Periode 2011-2016. Jurnal Ilmu Manajemen Vol. 7 No. 2.

4. Afza, T., & Alam, A. 2014. Corporate Derivatives and Foreign Exchange Risk Management: A Case Study of Non-Financial Firms of Pakistan. The Journal of Risk Finance Vol. 12, No. 5, 409-420.

5. Afza, T., & Alam, A. 2016. Foreign Currency Derivatives and Firm Value. European Journal of Natural and Social Sciences Vol. 5, No. 1 , 1-14.