FACTORS AFFECTING HEDGING DECISIONS: AN ANALYSIS IN THE TRANSPORTATION AND LOGISTIC COMPANIES LISTED AT INDONESIA STOCK EXCHANGE PERIOD 2021-2024

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.