The Effect of Liquidity and Managerial Ownership on the Use of Derivative Instruments and Company Risk

This study aims to analyze the effect of liquidity, managerial ownership and the use of derivatives on company risk of manufacturing companies listed on the Indonesian Stock Exchange (IDX). This research is expected to provide insight to companies in the application of corporate risk management by taking into account the level of liquidity, managerial ownership and use of derivative instruments. In addition, this research is expected to enrich the scientific nature of the relationship between liquidity, managerial ownership, the use of derivative instruments and company risk. This research is conducted using a quantitative approach. The population in this study are all manufacturing companies listed on the IDX. The technique of determining the sample is by purposive sampling method. The companies included in this research sample are manufacturing companies that are always listed on the Indonesia Stock Exchange from 2016 to 2018. This research is expected to be able to cover the gaps in the literature related to corporate risk management.