Hedging is a procedure that can be carried out to protect the company from losses on fluctuations in the rupiah exchange rate against foreign currencies. State-owned companies that conduct transactions with foreign currencies are urged by the Government to hedge to avoid additional debt due to fluctuating exchange rates. This study aims to ascertain the effect of growth opportunity, firm size, and dividend policy simultaneously and partially on the hedging decisions of BUMN companies listed on the Indonesia Stock Exchange for the 2011-2020 period. The secondary data used in this study came from the financial statements and annual reports of BUMN companies registered on the Indonesia Stock Exchange for 2011-2020. The population in this study is BUMN companies listed on the Indonesia Stock Exchange for the period 2011-2020. Purposive sampling was used in this study's sample selection, resulting in the collection of 113 samples from 12 companies between 2011 and 2020. The data analysis techniques used in this study are descriptive statistical analysis and logistic regression analysis. Based on the study's results, it was concluded that growth opportunities, firm size, and dividend policies simultaneously affect hedging. Accordingly, growth opportunity and company size significantly positively affect hedging decisions in BUMN companies listed on the Indonesia Stock Exchange from 2011-2020. Meanwhile, the dividend policy negatively affects hedging decisions in BUMN companies listed on the Indonesia Stock Exchange from 2011-2020.

Isrina Octy Indah Pertiwi

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Hedging Decision: Growth Opportunity, Firm Size, and Dividend Policy (Study of BUMN Companies Listed on Indonesia Stock Exchange 2011-2020)