Abstract:
This research seeks to examine how foreign exchange rates (Rupiah against US
Dollar), interest rates, profitability, and solvency influence corporate hedging
decisions among transportation and logistics firms registered on the Indonesia Stock
Exchange (IDX) for the years 2021 to 2024. This research involved 37 companies, of
which 27 were purposively selected to serve as the sample. This study collected data
by reviewing the financial report and the notes in the annual reports of every sampled
during the research period. To analyze the data, logistic regression was used. The
findings showed that transportation and logistics firms tend to rely more on natural
hedging strategies when dealing with financial risks that arise from interest rates,
high profitability, low solvency, and exchange rates rather than using hedging
strategies.
