Panel Method in Hedging: Evidence from The Indonesian Agricultural Sector

Hedging is a derivative instrument in the form of actions used to minimize risks due to fluctuations in foreign currencies, interest rates, and commodity prices. This study aims to analyze the factors that influence hedging in agricultural sector companies using the panel data method in the form of...

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Main Authors: Faizul Mubarok, Risma Nadya Utami
Format: Article
Language:English
Published: Universitas Negeri Semarang 2020-09-01
Series:Jurnal Dinamika Akuntansi
Subjects:
Online Access:https://journal.unnes.ac.id/nju/index.php/jda/article/view/24676
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author Faizul Mubarok
Risma Nadya Utami
author_facet Faizul Mubarok
Risma Nadya Utami
author_sort Faizul Mubarok
collection DOAJ
description Hedging is a derivative instrument in the form of actions used to minimize risks due to fluctuations in foreign currencies, interest rates, and commodity prices. This study aims to analyze the factors that influence hedging in agricultural sector companies using the panel data method in the form of quarterly from 7 companies from 2013 to 2019. The study results show growth opportunity, financial distress, debt, leverage, firm size, liquidity, profitability, and dividend payout ratio significantly influence the use of hedging. This study's results indicate that agricultural sector companies as a whole use hedging to protect against future risk exposures. Besides, it is necessary to know the factors that influence making decisions using hedging. This study recommends that companies increase export productivity balanced with appropriate hedging policies to improve company performance.
format Article
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issn 2085-4277
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publishDate 2020-09-01
publisher Universitas Negeri Semarang
record_format Article
series Jurnal Dinamika Akuntansi
spelling doaj-art-5bf3d68091584c48a3da1114e6e776ef2025-08-20T03:26:25ZengUniversitas Negeri SemarangJurnal Dinamika Akuntansi2085-42772020-09-0112216517710.15294/jda.v12i2.2467610073Panel Method in Hedging: Evidence from The Indonesian Agricultural SectorFaizul Mubarok0Risma Nadya Utami1Universitas Islam Negeri Syarif Hidayatullah JakartaUniversitas Islam Negeri Syarif Hidayatullah JakartaHedging is a derivative instrument in the form of actions used to minimize risks due to fluctuations in foreign currencies, interest rates, and commodity prices. This study aims to analyze the factors that influence hedging in agricultural sector companies using the panel data method in the form of quarterly from 7 companies from 2013 to 2019. The study results show growth opportunity, financial distress, debt, leverage, firm size, liquidity, profitability, and dividend payout ratio significantly influence the use of hedging. This study's results indicate that agricultural sector companies as a whole use hedging to protect against future risk exposures. Besides, it is necessary to know the factors that influence making decisions using hedging. This study recommends that companies increase export productivity balanced with appropriate hedging policies to improve company performance.https://journal.unnes.ac.id/nju/index.php/jda/article/view/24676hedgingagriculturedata panelriskfluctuation
spellingShingle Faizul Mubarok
Risma Nadya Utami
Panel Method in Hedging: Evidence from The Indonesian Agricultural Sector
Jurnal Dinamika Akuntansi
hedging
agriculture
data panel
risk
fluctuation
title Panel Method in Hedging: Evidence from The Indonesian Agricultural Sector
title_full Panel Method in Hedging: Evidence from The Indonesian Agricultural Sector
title_fullStr Panel Method in Hedging: Evidence from The Indonesian Agricultural Sector
title_full_unstemmed Panel Method in Hedging: Evidence from The Indonesian Agricultural Sector
title_short Panel Method in Hedging: Evidence from The Indonesian Agricultural Sector
title_sort panel method in hedging evidence from the indonesian agricultural sector
topic hedging
agriculture
data panel
risk
fluctuation
url https://journal.unnes.ac.id/nju/index.php/jda/article/view/24676
work_keys_str_mv AT faizulmubarok panelmethodinhedgingevidencefromtheindonesianagriculturalsector
AT rismanadyautami panelmethodinhedgingevidencefromtheindonesianagriculturalsector