ARDL's Strength Detects Financial Performance and Hedging against the Profits of Indonesian Food and Beverages Companies

This research aims to test the extent of variable leverage, profitability, Current Ratio, and firm size on the influence of financial performance and hedging as Independent variables to increase the profits of food and beverage companies listed on the Indonesia stock exchange in the period 2013–2019. The population of this study was conducted from 20 samples of existing food and beverage sector manufacturing companies. In the research sample of companies that led hedging activities, only four companies during the observation period and 5 (five) examples of companies did not conduct hedging activities. The rest reported that until 2018 some were newly joined, so they did not have data on the year observed. The results showed that Firm size and Profit are predicted not to influence hedging decision-making significantly in the long term. Leverage, Liquidity, and Profitability are expected in a long time to influence hedging decision-making.