PENGARUH MARKET TO BOOK VALUE, LIKUIDITAS DAN LEVERAGE TERHADAP KEPUTUSAN HEDGING PADA PERUSAHAAN SEKTOR KEUANGAN YANG TERDAFTAR DI BEI

Abstract

The objective of this paper contributes to examine and to analyse the effect of market to book value
towards hedging decisions, to examine and to analyse the effect of liquidity towards hedging decisions,
and to examine and to analyse the effect of leverage towards hedging decisions. There are several
companies of financial sector listed on the Indonesia Stock Exchange in 2012-2016 as the population in
this study. Using purposive sampling for determining the samples, so that the number of samples which
were obtained are 34 companies. The data analysis technique in this research uses logistic regression
analysis by using IBM SPSS Statistics 21. The results of this study demonstrate that liquidity affects on
hedging decisions. Based on this study, the result shows that either high-liquidity or low-liquidity affects
on companies hedging. Market to Book Value and Leverage do not affect on hedging decisions. Based on
this study, the result shows that neither high-market to book value and high-leverage nor low-market to
book value and low-leverage affect on companies hedging