The Effect of Leverage, Liquidity and Growth Opportunity on Hedging Decision Making in Mining Companies at Indonesia Stock Exchange

ABSTRACT : This study aims to explain the effect of leverage, liquidity, and growth opportunity on hedgingdecision making in mining companies at Indonesia Stock Exchange in the 2015-2019 period. a sample of 30from 48 populations of mining companies are obtained using purposive sampling and analyzed using logisticregression. The results show that the debt to equity ratio as a proxy for leverage has a significant positive effecton hedging decision making. Current ratio as a proxy for liquidity has a significant negative effect on hedgingdecision making and MBVE as a proxy for growth opportunity has a positive but insignificant effect on hedgingdecision making.

Keywords -leverage, liquidity, growth opportunity, hedging