Buletin

The Role of Currency Hedging on Firm Performance: A Panel Data Evidence in Indonesia (Vol.17 No.3 Januari 2015)

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This paper analyzes the role of currency hedging on non-financial firm’s performance. Most firms on
the sample have anticipated the currency mismatch risk by balancing the ratio of foreign debt to their asset
denominated in foreign currency. Using panel estimation, we find that there is no evidence of currency
hedging activities to affect capital and performance of firms. The result underlines the low intensity of
currency hedging activities due to lack of incentives, which is inline with the low derivative transaction
within the underdeveloped foreign currency market. This finding may raise a concern since currently the
development of foreign liabilities for non-financial firmsin Indonesia is increasing in significant level, as
well as the increase risk of domestic currency depreciation. For these reasons, Bank Indonesia should take
proactive policies to deepen foreign currency market as well as derivative market by providing a more
comprehensive and market friendly hedging instruments to banks and non-financial firms, while keep
promoting the benefit of currency hedging.

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Ketersediaan

Informasi Detail

Judul Seri

Buletin Ekonomi Moneter dan Pebankan

No. Panggil

BEMP15-17.3

Penerbit

Jakarta : Bank Indonesia., 2015

Deskripsi Fisik

Hlm.261-356: 270: ilus,; 26 cm

Bahasa

Indonesia

ISBN/ISSN

1410-8046

Klasifikasi

NONE

Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

Vol.17 No.3 Januari 2015)

Subjek

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Info Detail Spesifik

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Pernyataan Tanggungjawab

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Versi lain/terkait

Lampiran Berkas

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