The Effect of Leverage, Liquidity, and Cash Flow Volatility on Hedging Decision in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2021-2023

Abstract

The purpose of this study is to determine whether leverage, liquidity, and cash flow volatility influence companies’ decisions to implement hedging policies in manufacturing companies listed on the Indonesia Stock Exchange from 2021-2023. The data sources for this study are secondary sources obtained from company financial reports with a sample size of 103 companies. The research method used in this study is a quantitative method with data analysis techniques in the form of logistic regression analysis. The results of the study indicate that leverage and cash flow volatility have a significant effect on hedging decisions. Meanwhile, liquidity has no effect on hedging decisions.