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International Financial

The Determinants of Corporate Hedging Policy:

A Case Study from Indonesia
Description

The search result is a descriptive statistics table from a research paper. The table presents the minimum,
maximum, mean, and standard deviation of several variables, including liquidity, managerial ownership,
dividend payout ratio, debt equity ratio, cash flow volatility, growth opportunity, size, and the number of
samples. The table provides an overview of the data for the research, and it shows the distribution of the
variables among the sample companies. The descriptive statistics table is a useful tool to summarize and
analyze data, and it can help researchers to identify patterns, trends, and outliers in the data.

RQ

The research question of the journal is to investigate the determinants of corporate hedging policy in
Indonesia. The study aims to explore the relationship between the company's internal factors and the
company's hedging policy through the use of derivative instruments. The study examines the impact of
liquidity, managerial ownership, dividend payout ratio, debt equity ratio, cash flow volatility, growth
opportunity, size, and the number of samples on the corporate hedging policy. The study hypothesizes that
liquidity negatively affects the corporate hedging policy. The research question is relevant to the field of
finance and can provide insights into the factors that influence the hedging decisions of companies in
Indonesia.

The type of methodology

The methodology used in the research is logistic regression analysis. The study aims to analyze the effect
of internal factors on hedging policies through the use of derivative instruments in non-financial companies
in Indonesia from 2014 to 2016, with firm size as a control variable. The study uses a sample of 27 non-
financial sector companies listed on the Indonesia Stock Exchange, selected through purposive sampling.
The dependent variable is hedging policy using derivative instruments, represented by a dummy variable.
The independent variables are liquidity, managerial ownership, dividend payout ratio, leverage, cash flow
volatility, and growth opportunity. The study uses descriptive statistics to provide an overview of the data
and logistic regression analysis to test the antecedents of the hedging policy from the selected sample. The
result shows that liquidity and cash flow volatility have a significant positive effect on the use of derivative
instruments, while dividend payout ratio, managerial ownership, leverage, and growth opportunity have no
significant effect on hedging policy. The methodology used in the research is appropriate for testing the
research question and provides insights into the factors that influence the hedging decisions of companies
in Indonesia

The study investigates and summarizes

The study investigates and summarizes the determinants of corporate hedging policy in Indonesia.
Specifically, the study aims to explore the relationship between the company's internal factors and the
company's hedging policy through the use of derivative instruments. The study examines the impact of
liquidity, managerial ownership, dividend payout ratio, debt equity ratio, cash flow volatility, growth
opportunity, size, and the number of samples on the corporate hedging policy. The study uses logistic
regression analysis to test the antecedents of the hedging policy from the selected sample. The result
shows that liquidity and cash flow volatility have a significant positive effect on the use of derivative
instruments, while dividend payout ratio, managerial ownership, leverage, and growth opportunity have no
significant effect on hedging policy. The study concludes that liquidity is a significant determinant of
corporate hedging policy in Indonesia, and companies with high levels of liquidity are less likely to apply the
hedging policy.

The conclusion

The search results provided do not include the main conclusion of the journal article. However, based on
the information provided in the search results, the study aims to investigate the determinants of corporate
hedging policy in Indonesia and examines the impact of several internal factors on the corporate hedging
policy. The study uses logistic regression analysis to test the antecedents of the hedging policy from the
selected sample and concludes that liquidity and cash flow volatility have a significant positive effect on the
use of derivative instruments, while dividend payout ratio, managerial ownership, leverage, and growth
opportunity have no significant effect on hedging policy. The study provides insights into the factors that
influence the hedging decisions of companies in Indonesia and can be useful for policymakers, investors,
and researchers in the field of finance.