The Effect of Hedging Strategies on the Financial Performance of Import-Export Companies in Indonesia
DOI:
https://doi.org/10.58812/wsis.v3i11.2400Keywords:
Hedging Strategies, Financial Performance, Foreign Exchange Risk, Import–Export Companies, IndonesiaAbstract
This study examines the effect of hedging strategies on the financial performance of import–export companies in Indonesia. Due to the high exposure to foreign exchange fluctuations, firms engaged in international trade increasingly adopt hedging mechanisms to stabilize financial outcomes. Using a quantitative approach, data were collected from 115 respondents through a Likert scale–based questionnaire and analyzed using SPSS version 25. Statistical tests including validity, reliability, correlation, and regression analyses were conducted to evaluate the relationship between hedging strategies and financial performance. The results show that hedging strategies have a positive and significant effect on financial performance. The correlation coefficient (r = 0.642) indicates a strong relationship, while the regression analysis reveals that hedging explains 41.2% of the variation in financial performance. Forward contracts, options, swaps, and natural hedging contribute significantly to improving profitability, liquidity, and cash flow stability. The findings highlight the importance of systematic risk management practices in increasing the financial resilience and competitiveness of import–export companies in Indonesia. This study recommends that firms enhance their financial literacy and adopt more structured hedging policies to effectively mitigate currency risks.
References
[1] F. S. Zai and A. Mansur, “Hedging Strategy to Mitigate Exchange Rate Risk in Cross-Border Transactions: Literature Review,” J. Bus. Manag. Econ. Dev., vol. 2, no. 03, pp. 1155–1168, 2024.
[2] M. Xu, Q. Xu, C. Jiang, and X. Zhuo, “High-frequency Growth-at-Risk of China: the Role of Macro-financial Environment,” Comput. Econ., pp. 1–38, 2025.
[3] A. Ridwan and H. Fakhrurroja, “Predictive Analysis of the Impact of Exchange Rate Fluctuations on the Financial Performance of Multinational Fintech Companies in Indonesia,” Eduvest-Journal Univers. Stud., vol. 5, no. 7, pp. 9313–9325, 2025.
[4] B. E. Napitupulu, J. S. S. Rajagukguk, and S. Siswono, “The Managerial Economics Implications Of Rupiah Exchange Rate Fluctuations On Investment And Corporate Growth,” Int. J. Informatics, Econ. Manag. Sci., vol. 3, no. 2, pp. 174–187, 2024.
[5] H. Kim, “Financial derivatives use and firm value in East Asian non-financial firms.” Middlesex University, 2016.
[6] N. Almas, C. Wijaya, F. Indriati, and S. Anindyaswari, “The effect of hedging exchange rate risk, interest rate risk and commodity price risk with derivative instruments on firm value,” Manag. Sci. Lett., vol. 11, no. 5, pp. 1707–1714, 2021.
[7] H. Purnomo, B. Sugeng, and P. Handayati, “Strategy of Derivatives Hedging: Maintaining and Increasing Firm Value amidst Market Volatility in Indonesia,” Shafin Sharia Financ. Account. J., vol. 4, no. 2, pp. 66–84, 2024.
[8] H. Windcliff, P. A. Forsyth, and K. R. Vetzal, “Pricing methods and hedging strategies for volatility derivatives,” J. Bank. Financ., vol. 30, no. 2, pp. 409–431, 2006.
[9] X. Bai, L. Cheng, and Ç. Iris, “Data-driven financial and operational risk management: Empirical evidence from the global tramp shipping industry,” Transportation Research Part E: Logistics and …. Elsevier, 2022.
[10] C. L. Alayón, K. Säfsten, and G. Johansson, “Barriers and Enablers for the Adoption of Sustainable Manufacturing by Manufacturing SMEs,” Sustain., vol. 14, no. 4, pp. 1–34, 2022, doi: 10.3390/su14042364.
[11] O. Korniienko, “Investment of Intellectual Capital in the Innovative Development of the Enterprise,” Intellect XXІ, no. 1, 2023, pp. 43–46, 2023, doi: 10.32782/2415-8801/2023-1.8.
[12] A. L. GHOFAR, R. N. P. PUTRA, and S. N. HAMIDAH, “Implementation Of Gateway Technology (Go-Pay) In Increasing Transaction Efficiency In MSMEs Dapur Restu,” J. Inf. Syst. Digit. Bus., vol. 1, no. 1, pp. 08–14, 2022, doi: 10.38142/jisdb.v1i1.651.
[13] R. Setyorini and R. O. Rey, “Analisis Model Bisnis pada Eighteen Nineteen Laundry dengan Pendekatan Business Model Canvas,” J. Secr. Bus. Adm., vol. 1, no. 1, p. 70, 2017, doi: 10.31104/jsab.v1i1.2.
[14] N. Titova and B. Sloka, “Impact of Intellectual Capital Efficiency on Growth Rate and Profitability of a Company: NASDAQ Baltic Case,” Eur. Integr. Stud., no. 16, pp. 150–165, 2022, doi: 10.5755/j01.eis.1.16.31492.
[15] C. Guan, J. Mou, and Z. Jiang, “Artificial intelligence innovation in education: A twenty-year data-driven historical analysis,” International Journal of Innovation Studies. Elsevier, 2020.
[16] M. Fang, F. Liu, S. Xiao, and K. Park, “Hedging the bet on digital transformation in strategic supply chain management: A theoretical integration and an empirical test,” … Distrib. &Logistics Manag., 2023, doi: 10.1108/IJPDLM-12-2021-0545.
[17] M. Rettinger, C. Mandl, and S. Minner, “A Data-Driven Approach for Optimal Operational and Financial Commodity Hedging,” Available SSRN 3918159, 2022.
[18] P. Kouvelis and D. Turcic, “Supporting operations with financial hedging: Cash hedging vs. cost hedging in an automotive industry,” Prod. Oper. Manag., 2021, doi: 10.1111/poms.13314.
[19] M. Rettinger, C. Mandl, and S. Minner, “A Data-Driven Approach for Optimal Operational and Financial Commodity Hedging,” A Data-Driven Approach for Optimal …. [Sl]: SSRN, 2023.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Eva Purnamasari, Arisha Putri Pradita, Mega Arum, Junet Kaswoto, Abdul Karim
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Facebook 
Instagram 
Twitter 
Youtube 
westscience.journals@gmail.com