THE EFFECT OF LEVERAGE AND FIRM SIZE ON HEDGING DECISIONS WITH LIQUIDITY AS A MODERATING VARIABLE

Ristanur Agustin, Anggita Langgeng Wijaya

Abstract


The purpose of this study is to examine whether leverage and firm size influence hedging decisions, as well as whether liquidity moderates the relationship between leverage and firm size on hedging decisions in energy sector companies listed on the Indonesia Stock Exchange for the period 2020–2024. This research employs a quantitative approach, with data analysis conducted using logistic regression and Moderated Regression Analysis (MRA). The population of this study consists of 76 energy sector companies, with a total of 61 companies selected as the sample through purposive sampling. The results indicate that leverage and firm size have a significant effect on hedging decisions. However, liquidity does not moderate the effect of leverage or firm size on hedging decisions.


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References


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