The Effect of Macroeconomics, Firm Size, Assets Growth, and Liquidity on Financial Distress and Hedging with Good Corporate Governance as a Moderation Variable in Manufacturing Companies Listed on the Indonesia Stock Exchange
Journal Title: International Journal of Social Science Humanity & Management Research - Year 2023, Vol 2, Issue 12
Abstract
Changes in currency exchange rates have an impact on currency appreciation and depreciation. One alternative that can help in managing risks arising from fluctuations in exchange rates is by utilizing hedging instruments. This research aimed to investigate the empirical evidence regarding the effect of macroeconomics, firm size, asset growth and liquidity on financial distress and hedging with good corporate governance as a moderation variable. The population were manufacturing companies listed on the Indonesian stock exchange and implementing hedging strategy in 2020-2022. Seventeen companies were selected as samples using purposive sampling techniques. Hypothesis testing was carried out by means of Structural Equation Model (SEM) approach based on the Partial Least Square (PLS). Among the 10 analysed hypotheses, 5 were proven to be accepted and the other 5 were rejected. The findings show the followings. The 2 exogenous variables (macroeconomics and asset growth) affected the endogenous variable (hedging), meanwhile the other 3 exogenous variables (firm size, liquidity and financial distress) did not affect it. The 3 exogenous variables (firm size, asset growth and liquidity) were proven to influence the endogenous variable (financial distress), whereas the variable of macroeconomics was not proven as such. Meanwhile, good corporate governance, as a moderation variable, did not provide full support for the causal relationship between financial distress and hedging.
Authors and Affiliations
Syaiful Rizai, Tri Ratnawati, Ulfi Pristiana
Keywords
Related Articles
- EP ID EP731103
- DOI 10.58806/ijsshmr.2023.v2i12n11
- Views 66
- Downloads 0
The Effect of Service Quality and Ease of Transactions with Discounted Prices as A Mediation Variables on Toll Road Customer Satisfaction at PT Waskita Bumi Wira Ruas Krian – Gresik
This research aims to determine discount prices in mediating the influence of service quality and ease of transactions on toll road customer satisfaction on the PT Waskita Bumi Wira section of the Krian - Gresik section....
Pattern of Employment in Rural Non-Farm Sector of Punjab
Historical perceptive clearly shows the agriculture cannot absorb all the growth of the rural workforce but the imperative role of non-agricultural activities recognized recently. Majority of the rural workforce is givin...
Impact of Flash Sale on Impulse Buying on E-Commerce Platforms of Gen Z Consumers in Vietnam
The study aims to examine the impact of Flash Sale programs on impulse buying behavior on E-commerce platforms of Gen Z consumers across the nation. The research was conducted with a sample of 453 Gen Z consumers who hav...
The Validity of the Decision/Estimation of Pure Unstamped Duty Prodeo
Pure prodeo is a method of litigation free of charge, or using no fees at all, meaning that the trial costs are given by justice seekers without any cost, including using stamp duty fees, so that decisions and decisions...
Teachers’ Perceived English Proficiency and Self-Efficacy of English Teachers in the Academic World
This research used descriptive correlational design to find the significant relationship between perceived English proficiency and self-efficacy of English teachers. The respondents of the study were 142 elementary teach...