Management and Economics Journal (MEC-J)
MEC-J (Vol 2, Issue 2, 08-2018)

THE DETERMINANTS OF HEDGING AND FIRM VALUE: An Empirical Study in Mining Companies Listed on Indonesia Stock Exchange


Irawanti, Garnis, Moeljadi, Moeljadi, Indrawati, Nur Khusniyah



Article Info

Publish Date
12 Aug 2018

Abstract

This study aims to determine the determinant factors in the companys hedging decisions and to determine whether the activities of corporate hedging decisions through derivative instruments provide increased value for the company. The sample consisted of 33 mining companies listed on Indonesia Stock Exchange during 2011-2015 period. The method used in this study is logistic regression and independent sample t-test. The result of logistic regression by using variable of financial distress, underinvestment cost, and size showed a positive correlation to corporate hedging decision. Meanwhile, by using an independent sample t-test found that the companys hedging decisions significantly affect the value of firms and the companies with hedging decision activity through derivative instruments have more superior value than companies by using natural hedging decisions. 


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Journal Info

Abbrev

mec

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Management and Economics Journal (MEC-J) is a peer-reviewed and open access journal that focuses on management and economics fields. This journal publishes original articles, reviews, and also interesting case reports. Letters and commentaries of our published articles are welcome. Subjects suitable ...