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This study aims to identify and analyse the influence of leverage, profitability, growth opportunity ratio and firm size on the hedging decisions of companies in the non-cyclical consumer sector listed on the Indonesia Stock Exchange. This study employs a quantitative approach; the study population comprises 86 non-cyclical companies period 2021-2024, whilst the sample consists of 10 companies selected using purposive sampling, and the data used is secondary data. The data analysis technique employed in this study is binary logistic regression, whilst data processing was carried out using Eviews 12. The results of this study indicate that, taken together, leverage, profitability, growth opportunities and firm size have a significant influence on companies’ decisions to engage in hedging. When examined individually, leverage has a positive and significant effect on a company’s decision to engage in hedging, whilst profitability, growth opportunities and firm size do not have a significant effect on this decision. These findings indicate that the level of leverage is a primary factor driving companies to engage in hedging as a means of managing financial risk.
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Ginting et al. (2026) studied this question.
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