EXCHANGE RATE VOLATILITY, FOREIGN DEBT, AND CASH FLOW ON HEDGING INTENSITY IN IDX INDUSTRIAL FIRMS

Nurwahyuning Etri Ruliyawati, Liliek Nur Sulistiyowati, Rihan Mustafa Zahri

Abstract


This study aims to examine the effect of Exchange Rate Volatility, Foreign Currency Debt, and Operating Cash Flow on FX Hedging Intensity. The population of this study consists of all industrial sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2021–2025. The sample was selected using a purposive sampling technique, resulting in a total of 32 companies over 5 years (160 observations). This study employs a quantitative approach using multiple linear regression analysis, processed with SPSS version 25. The results show that Exchange Rate Volatility has no significant effect on FX Hedging Intensity. Foreign Currency Debt has a positive and significant effect on FX Hedging Intensity. Operating Cash Flow has a negative and significant effect on FX Hedging Intensity. Simultaneously, the three variables have a significant effect on FX Hedging Intensity.


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