Determinants of hedging decisions in mining companies listed on the Indonesian Stock Exchange

Determinants of hedging decisions in mining companies listed on the Indonesian Stock Exchange

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This investigation meticulously examines how growth opportunities, firm size, leverage, and liquidity affect the hedging decisions of mining companies earthbath facial wipes listed on the Indonesia Stock Exchange from 2017 to 2022.Out of an initial population of 62 mining enterprises, a purposive sampling method distilled the focus to 14 representative firms, with the collected data subjected to rigorous analysis via SPSS.The research uncovers that growth opportunities do not significantly alter hedging decisions, whereas firm size demonstrates a significant positive association with the likelihood of engaging in hedging practices.

In contrast, leverage and liquidity, as indicated by the current ratio, do not show a substantial impact on hedging behavior.This study seeks to illuminate the various determinants shaping hedging strategies within the mining sector, offering crucial insights that could inform future research and enhance the understanding of risk management approaches in abc material this particular industry.