THE ANALYSIS OF THE EFFECT FOREIGN EXCHANGE HEDGING, INTEREST RATE HEDGING , COMMODITY HEDGING ON RETURN ON INVESTED CAPITAL (ROIC) AND RETURN ON ASSET (ROA) FOR PERIOD 2010-2013

Abstract

The study examined and analyzed the effect of foreign exchange, interest rate, and commodity hedging on the firm performance of the companies that are listed in Indonesia Stock Exchange category Manufacturing companies in 2010-2013. This study use dummy variables sampling by evaluate the companies who using hedging or not. The company who use hedging method gives value of 1 and the companies did not used hedging gives value of 0. To analyze the detail, researcher use the regression analysis and hypothesis testing. The result of this study showed that the use of interest rate hedging have statistically significant effect to the firm performance measured using ROA and ROIC with 11.1% adjusted R2. Meanwhile foreign exchange and commodity hedging have not statistically significant impact toward in firm performance measured using ROA and ROIC.