Factors Affecting The Value Of The Company And Hedging On Industry Companies Listed In Bei

AR, Firdaus and Suyadi and Agustin, Hamdi and Arif, Emkhad (2017) Factors Affecting The Value Of The Company And Hedging On Industry Companies Listed In Bei. Prosiding 14th International Annual Symposium on Management. p. 10.

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Abstract

One way to minimize foreign exchange risk is to hedging. Hedging is a strategy created to reduce the incidence of unexpected business risks, while maintaining the possibility to benefit from the investment. The principle of hedging is to cover loss of asset positions beginning with the advantages of the position of hedging instruments. In the current study found a determinant variable mainly hedging variable that affects the value of the company which is very limited which has been conducting research related to hedging. In addition the study makes hedging variable as the dependent variable which is also very rare that have completed the study. This research consist 18 populations in a sample can amount to 15 companies that meet the criteria, there are eight companies that perform hedging activities, which amounted to 50.3% of the total sample used. While the company Telecommunication, from 8 companies listed in the Stock Exchange there are six companies that meet all the criteria and hedging activities. The results showed that the company's profitability and debt influence on hedging. From the research of three variables: leverage (DER), profitability (ROA) has positive influence on Hedging. Meanwhile Hedging negatively affect the value of the company (Tobins Q). These results indicate that hedging of foreign exchange risk can be minimized. So, It affects an increase in the level of corporate profits because the company will increase debt.

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