The Effect of Profitability, Leverage, and Growth Opportunity on Hedging Activities in 2017 (Study on BUMN Listed on Indonesia Stock Exchange)

Abstract

This study was done to determine the effect of Return on Assets (ROA), Debt to Equity Ratio (DER), and Growth Opportunities for Hedging activities in 2017. The objects of research are state-owned companies listed on the Indonesia Stock Exchange. The sampling technique employed was the purpose-sampling method. This method obtained 19 companies that met the criteria from total of 20 companies in one year. The type of data used was secondary data and the method used was descriptive analysis and logistic regression using the overall model fit, R Square, and T Test. The results show that Return on Assets affects the hedging activity, whereas Debt to Equity Ratio and Growth Opportunities do not affect hedging activities.