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
Interactive Video-Aided Instructional Materials and Learning Competencies in Physical Education
This experimental study focused on using interactive video-aided instructional material and its impact on achieving or mastering the learning competencies in Physical Education. The study participants were Grade 10 stude...
The Influence of French Phonetics on Vocal Technique in French Art
French art songs, celebrated for their lyrical beauty and emotional depth, present a unique challenge to singers due to the intricate nuances of French phonetics. This research explores the profound influence of French p...
Ownership Structure and Financial Performance of Listed Manufacturing Firms in Nigeria: Moderating Role of Board Diversity.
The financial performance of listed Manufacturing firms in Nigeria has been deteriorated considerably. There are other issues that could lead to the poor economic performance but the researchers are explicitly interested...
Multifactor Leadership Styles and School-Based Management for Quality Education in the Basic Level
The study sought to determine the relationship of the multifactor leadership styles of school heads with that of schoolbased management in Sariaya West District, Schools Division of Quezon for school year 2022-2023. The...
Leadership Behavior on Organizational Performance in Indonesian Government
This research generally aims to determine the influence of leadership behaviour on organizational performance through the values of religiosity and organizational commitment in the Jambi provincial government. Based on a...