Pengaruh Leverage, Profitabilitas, dan Ukuran Perusahaan terhadap Keputusan Lindung Nilai pada Perusahaan Otomotif selama Pandemi Covid-19

Abstract

This research aims to examine the effect of leverage, profitability, and firm size on hedging decisions in automotive sub-sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2021 period. Hedging is a risk management strategy employed by companies to minimize potential losses arising from exchange rate fluctuations and other financial risks. The independent variables in this study consist of leverage, proxied by the Debt to Equity Ratio (DER); profitability, proxied by Return on Assets (ROA); and firm size, measured using the natural logarithm of total assets. The dependent variable is the hedging decision. This research employs a quantitative approach using secondary data obtained from companies’ annual reports and financial statements. The sampling technique used is purposive sampling, resulting in a number of companies that meet the research criteria. The data were analyzed using logistic regression analysis. The results indicate that leverage, profitability, and firm size simultaneously have a significant effect on hedging decisions. Partially, leverage and profitability do not have a significant effect on hedging decisions. Meanwhile, firm size has a positive and significant effect on hedging decisions. These findings suggest that larger firms tend to have greater awareness and capability in managing financial risks through hedging activities compared to smaller firms.