The Influence of Growth Opportunity, Leverage, and Liquidity on Hedging Policy Implementation in Mining Sector Companies listed on IDX 2015-2019 Period

Abstract

The purpose of this study is to determine the significance of the influence of growth opportunity, leverage, and liquidity both simultaneously and partially on hedging policy implementation. The object of this study is mining sector companies on the Indonesia Stock Exchange (IDX) 2015-2019 period. The data used in this study is secondary data obtained from the annual financial report of the mining sector company that are listed on the Stock Exchange for the period 2015-2019. The sample obtained was 75 observations from 15 mining sector companies of the period 2015-2019. The method used is purposive sampling. The techniques used in this analysis are logistic regression and descriptive statistics. The results in this study indicate variable growth opportunity, leverage, and liquidity have a simultaneous influence on the implementation of hedging policies. While partially growth opportunity negatively influences the implementation of hedging policy, leverage has an insignificant positive influence on the implementation of hedging policies, and liquidity significantly influenced the implementation of hedging policy. From the results of the study, suggestions that can be given to the next researcher are to add research periods, use other research objects, as well as add other variables. And for mining sector companies to protect assets from exchange rate fluctuations, hedging policies need to be implemented, especially companies that have large assets and large foreign loans because they will be vulnerable to exchange rate fluctuations.