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Faculty Research

THE DETERMINANTS OF CORPORATE HEDGING: EVIDENCE FROM INDONESIA

Detail
Author NEVI DANILA
ID 202.710.123
Published Date 17-11-2015

Abstract

THE DETERMINANTS OF CORPORATE HEDGING: EVIDENCE FROM INDONESIA Nevi Danila Chia-Hsing Huang Abstract The determinants of derivatives usage in Indonesia companies are studied in this paper. Logit model is used to study the derivatives usage of 276 Jakarta Stock Exchange listed non-financial companies. Research result show that firm size and growth are the factors that affect company of derivatives. Firm size has positive impact on derivatives usage. Growth has negative impact on derivatives usage. Agency costs, profitability, and substitute for hedging are not found to be the factors of firm on using derivative instruments in Indonesia. Keyword: derivatives; firm size; growth