Meta-Analysis: Determining Hedging on Foreign Exchange
Abstract
Hedging is an action taken by investors, both individuals and governments and companies to protect value due to the risk of price changes. Investors and companies must have good risk management. They must pay attention to, identify, mitigate, and control risks, to survive amidst risk uncertainty. Hedging aims to deal with risks caused by changes in interest rates, exchange rates, and prices of goods, especially when using foreign exchange. This research aims to discuss further the determination of hedging on foreign exchange, using the meta-analysis method. The data source used is secondary data, namely data obtained from previous research. The results show that almost all companies hedge to minimize risk, although there is a multinational company that does not do so.
Downloads
References
Aabo, T., & Ploeen, R. (2014). The German humpback: Internationalization and Foreign Exchange Hedging. Journal of Multinational Financial Management, 27, 114–129. https://doi.org/10.1016/j.mulfin.2014.05.001
Abubakar, L., & Handayani, T. (2016). Transaksi Lindung Nilai (Hedging) dalam Praktik Perbankan dan Implikasinya terhadap Pembaruan Hukum Kontrak Nasional.
Allayannis, G., & Ofek, E. (2001). Exchange Rate Exposure, Hedging, and The Use of Foreign Currency Derivatives. Journal of International Money and Finance, 20(2), 273–296. https://doi.org/10.1016/S0261-5606(00)00050-4
Álvarez-Díez, S., Alfaro-Cid, E., & Fernández-Blanco, M. O. (2016). Hedging Foreign Exchange Rate Risk: Multi-Currency Diversification. European Journal of Management and Business Economics, 25(1), 2–7. https://doi.org/10.1016/j.redee.2015.11.003
Aristama, Z., Hidayat, R., & Sulasmiyati, S. (2017). Analisis Penggunaan Hedging Forward Contract Sebagai Upaya Perlindungan atas Eksposur Transaksi. Jurnal Administrasi Bisnis, 49(2), 120–128.
Bartram, S. M. (2008). What Lies Beneath: Foreign Exchange Rate Exposure, Hedging and Cash Flows. Journal of Banking and Finance, 32(8), 1508–1521. https://doi.org/10.1016/j.jbankfin.2007.07.013
Brigham, & Houston. (2014). Dasar – Dasar Manajemen Keuangan – Essentials of Financial Management.
Buyukkara, G., Kucukozmen, C. C., & Uysal, E. T. (2022). Optimal hedge ratios and hedging effectiveness: An analysis of the Turkish futures market. Borsa Istanbul Review, 22(1), 92–102. https://doi.org/10.1016/j.bir.2021.02.002
Case, K. E., & Fair, R. C. (2007). Prinsip-Prinsip Ekonomi : Jilid 2.
Darmawi, H. (2014). Pasar Finansial & Lembaga-Lembaga Finansial.
Eiteman. (2010). Manajemen Keuangan Multinasional Jilid II (Edisi 11). Jakarta: Erlangga.
Era Larasati, N. P., & Gede Suarjaya, A. A. (2017). Analisis Forward Contract Hedging Dan Open Position Fakultas Ekonomi dan Bisnis Universitas Udayana ( Unud ), Bali , Indonesia ABSTRAK Era globalisasi saat ini menyebabkan perkembangan transaksi di perusahaan-perusahaan antar Negara begitu pesat . Transak, 6(5), 2556–2581.
Fahmi. (2010). Manajemen Kinerja. Bandung: Alfabeta.
Faisal. (2001). Manajemen Keuangan Internasional (Edisi 1). Jakarta: Salemba Empat.
Hady, H. (2012). Manajemen Keuangan Internasional, 3.
Hana, E. (2020). Faktor-Faktor yang Mempengaruhi Keputusan Hedging Studi pada Perusahaan yang Terdaftar di Bursa Efek Indonesia Periode 2014-2018. Universitas Sanata Dharma.
Hanafi, M. M. (2009). Manajemen Risiko.
Huffman, S. P., & Makar, S. D. (2004). The effectiveness of currency-hedging techniques over multiple return horizons for foreign-denominated debt issuers. Journal of Multinational Financial Management, 14(2), 105–115. https://doi.org/10.1016/j.mulfin.2003.07.001
Irham, F. (2014). Pengantar Manajemen Keuangan. Bandung: Alfabeta.
Kunkler, M. (2021). Currency hedging for single-currency equity portfolios: Does cross-asset risk matter? Global Finance Journal, 49(September). https://doi.org/10.1016/j.gfj.2020.100575
Liao, S. H., Lu, S. L., & Lai, Y. W. (2012). Mining the hedge and arbitrage of the Taiwan foreign exchange market. Expert Systems with Applications, 39(3), 3197–3206. https://doi.org/10.1016/j.eswa.2011.09.006
Luo, H. (Robin), & Wang, R. (2018). Foreign currency risk hedging and firm value in China. Journal of Multinational Financial Management, 47–48, 129–143. https://doi.org/10.1016/j.mulfin.2018.11.002
Madura. (2000). Manajemen Keuangan Internasional. (E. Salim, Ed.) (Edisi 4). Jakarta: Erlangga.
Martin, A. D., & Mauer, L. J. (2004). Scale economies in hedging foreign exchange cash flow exposures. Global Finance Journal, 15(1), 17–27. https://doi.org/10.1016/j.gfj.2003.10.006
Mediana, I., & Muharam, H. (2016). Analisis Faktor- Faktor Yang Mempengaruhi Pengambilan Keputusan Lindung Nilai (Hedging) Menggunakan Instrumen Derivatif (Studi Kasus Pada Perusahaan Manufaktur Dan Perusahaan Energi Dan Sumber Daya Mineral Yang Terdaftar Di Bei Periode 2010-2014). Jurnal Bisnis Dan Manajemen, 9.
Miksalmina. (2016). Strategi Hedging Pada Pengelolaan Hutang Luar Negeri Pemerintah Indonesia Terhadap Resiko Fluktuasi Nilai Tukar Us Dollar, 04(01), 1–23.
Morey, M. R., & Simpson, M. W. (2001). To hedge or not to hedge: The performance of simple strategies for hedging foreign exchange risk. Journal of Multinational Financial Management, 11(2), 213–223. https://doi.org/10.1016/S1042-444X(00)00050-5
Palupi, A. W. (2022). Analisis Perbandingan Penggunaan Forward Contract Hedging Dengan Metode Lindung Nilai Lainnya Dalam Meminimalisir Risiko Eksposur Transaksi. Jurnal Ilmiah Mahasiswa FEB, 10(2), 1–21. Retrieved from https://jimfeb.ub.ac.id/index.php/jimfeb/article/view/8078/6859
Paranita, E. S. (2011). Kebijakan Hedging Dengan Derivatif Valuta Asing Pada Perusahaan Publik Di Indonesia. Seminar Nasional Ilmu Ekonomi Terapan, (32), 228–237.
Prayoga, D., & Purnomo, D. (2024). The Influence of Foreign Exchange Policy from Export Proceeds, Import Payments, Inflation Rate, and Rupiah Exchange Rate on Foreign Direct Investment in Indonesia. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 7(3), 4875-4901. https://doi.org/10.31538/iijse.v7i3.5467
Simpson, M. W. (2004). Selectively hedging the US dollar with foreign exchange futures contracts. Journal of International Financial Markets, Institutions and Money, 14(1), 75–86. https://doi.org/10.1016/S1042-4431(03)00045-3
Song, S., Lee, S. H., & Makhija, M. (2015). Operational hedging in foreign direct investments under volatile and divergent exchange rates across countries. Journal of World Business, 50(3), 548–557. https://doi.org/10.1016/j.jwb.2014.08.012
Wang, C., & Low, S. S. (2003). Hedging with foreign currency denominated stock index futures: Evidence from the MSCI Taiwan index futures market. Journal of Multinational Financial Management, 13(1), 1–17. https://doi.org/10.1016/S1042-444X(02)00020-8
Zhu, M. R. (2010). Corporate Hedging, Financial Distress and Product Market Compettition. Working Paper. Austin: University of Texas.
Copyright (c) 2024 Tri Buana Wira Pradhani, Sariah Sariah, Hwihanus Hwihanus, Tri Ratnawati
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
