Research Article
Determinants of Corporate Hedging Activities with Financial Distress as a Moderating Variable
@INPROCEEDINGS{10.4108/eai.1-10-2020.2305563, author={Ninuk Dewi Kesumaningrum and Raden Weddie Andriyanto}, title={Determinants of Corporate Hedging Activities with Financial Distress as a Moderating Variable}, proceedings={Proceedings of the First International Conference of Economics, Business \& Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia}, publisher={EAI}, proceedings_a={ICEBE}, year={2021}, month={4}, keywords={leverage institutional ownership company size company growth opportunity financial distress hedging agency theory}, doi={10.4108/eai.1-10-2020.2305563} }- Ninuk Dewi Kesumaningrum
Raden Weddie Andriyanto
Year: 2021
Determinants of Corporate Hedging Activities with Financial Distress as a Moderating Variable
ICEBE
EAI
DOI: 10.4108/eai.1-10-2020.2305563
Abstract
This study aims to explore determinant variables of corporate hedging activities with financial distress as a moderating variable based on Agency Theory. Determinant variables tested were leverage, institutional ownership, company size, and company growth opportunity. Several companies in Indonesia have carried out hedging activities to protect operational and financial risks resulting from international trade. Sampling used with a purposive sampling technique and selected 165 companies from all companies listed on the Indonesia Stock Exchange in 2012-2018. This study found that leverage, institutional ownership, company size, and company growth opportunity significantly affect corporate hedging activities. Moreover, financial distress strengthens the effect of the independent variables on the dependent variable.