Abstract :
This study aims to analyze the factors that influence the decision of the use
derivative instruments, on 415 public listed companies on the Indonesia Stock
Exchange in the period 2016. For the decision of the company using or not using
derivative instruments will be categorized by dummy obtained in the company's
annual report. This study uses statistical descriptive method to describe each
variable and logistic regression to analyze the relationship of debt to equity ratio,
firm size, liquidity and profitability to decision of using derivative instrument. The
result shows that firm size influence to decision of using derivative instrument,
while debt to equity ratio, firm size and profitability have no effect to decision of
using derivative instrument.