FACTORS THAT AFFECT FINANCIAL DISTRESS IN INDONESIA
DOI:
https://doi.org/10.29121/granthaalayah.v9.i9.2021.4269Keywords:
Liquidity, Profitability, Leverage, Company Size, Interest Rates, Financial DistressAbstract [English]
The results show that, it is proven that the variable liquidity and interest rates have a negative effect on financial distress. Meanwhile, the variables of Profitability, Leverage and Company Size have a positive effect on financial distress. While the Economic Stimulus variable is known to be the relationship between all variables of Liquidity, Profitability, Leverage, Company Size and Interest Rate on variables to Financial Distress. This means that company leaders must take into account liquidity, profitability, leverage, company size and interest rates to avoid financial distress.
Downloads
References
Ahmad, Sardar, Lie Zhang, Adnan Ahmad, and Awais Ahmad. (2020). "Effect of Financial Distress on Firm ' s Performance of Non-Financial Firms Registered with Pakistan Stoke Exchange. School of Management." (May). Retrieved from https://ijbms.org/ojs/index.php/ijbms/article/view/32
Brunelli, Sandro, Chiara Carlino, Rosella Castellano, and Alessandro Giosi. (2020). Going Concern Modifications and Related Disclosures in the Italian Stock Market: Do Regulatory Improvements Help Investors in Capturing Financial Distress? Springer US. Retrieved from https://doi.org/10.1007/s10997-020-09537-7 DOI: https://doi.org/10.1007/s10997-020-09537-7
Dai, Ratna Meisa. (2016). "Analysis of Financial Performance through Profitability Approach at Culinary Center in Cimahi City." 5(2):364-70. Retrieved from https://www.sibresearch.org/uploads/3/4/0/9/34097180/riber_xk16-088__364-370_.pdf
Dirman, Angela. (2020). "Financial Distress: The Impacts of Profitability, Liquidity, Leverage, Firm Size, and Free Cash Flow." International Journal of Business, Economics and Law 22(1):17-25. Retrieved from http://ijbel.com/wp-content/uploads/2020/08/IJBEL22_205.pdf
Disemadi, Hari Sutra, and Ali Ismail Shaleh. (2020). "Banking Credit Restructuring Policy amid COVID-19 Pandemic in Indonesia." Jurnal Inovasi Ekonomi 5(02):63-70. Retrieved from https://doi.org/10.22219/jiko.v5i3.11790 DOI: https://doi.org/10.22219/jiko.v5i3.11790
Durrah, Omar, Abdul Aziz, Abdul Rahman, Syed Ahsan Jamil, and Nour Aldeen Ghafeer. (2016). "Exploring the Relationship between Liquidity Ratios and Indicators of Financial Performance : An Analytical Study on Food Industrial Companies Listed in Amman Bursa." 6(2):435-41. Retrieved from https://www.researchgate.net/profile/Syed_Ahsan_Jamil/publication/297158263_Exploring_the_Relationship_between_Liquidity_Ratios_and_Indicators_of_Financial_Performance_An_Analytical_Study_on_Food_Industrial_Companies_Listed_in_Amman_Bursa/links/56dd532408aef38babcbf20e/Exploring-the-Relationship-between-Liquidity-Ratios-and-Indicators-of-Financial-Performance-An-Analytical-Study-on-Food-Industrial-Companies-Listed-in-Amman-Bursa.pdf
Fredrick, Ikpesu. (2019). "Firm Specific Determinants of Financial Distress: Empirical Evidence from Nigeria." Journal of Accounting and Taxation 11(3):49-56. Retrieved from Https://doi.org/10.5897/JAT2019.0333 DOI: https://doi.org/10.5897/JAT2019.0333
Gregova, Elena, Katarina Valaskova, Peter Adamko, Milos Tumpach, and Jaroslav Jaros. (2020). "Predicting Financial Distress of Slovak Enterprises: Comparison of Selected Traditional and Learning Algorithms Methods." Sustainability (Switzerland) 12(10). Retrieved from https://doi.org/10.3390/su12103954 DOI: https://doi.org/10.3390/su12103954
Hasan, M. Iqbal. (2008). Analisis Data Penelitian Dengan Statistik. Jakarta: PT. Bumi Aksara.
Kakinuma, Yosuke. (2020). "Return Premium of Financial Distress and Negative Book Value: Emerging Market Case." Journal of Asian Finance, Economics and Business 7(8):25-31. Retrieved from https://doi.org/10.13106/jafeb.2020.vol7.no8.025 DOI: https://doi.org/10.13106/jafeb.2020.vol7.no8.025
Kaplan, Greg, Giovanni L. Violante, and Greg Kaplan. (2020). "The Great Lockdown and the Big Stimulus :" Tracing the Pandemic Possibility Frontier for the U.S. Retrieved from https://www.nber.org/papers/w27794 DOI: https://doi.org/10.3386/w27794
Liang, Deron, Chih Fong Tsai, Hung Yuan (Richard) Lu, and Li Shin Chang. (2020). "Combining Corporate Governance Indicators with Stacking Ensembles for Financial Distress Prediction." Journal of Business Research 120(December 2019):137-46. Retrieved from https://doi.org/10.1016/j.jbusres.2020.07.052 DOI: https://doi.org/10.1016/j.jbusres.2020.07.052
Lord, Justin, Amy Landry, Grant T. Savage, and Robert Weech-Maldonado. (2020). "Predicting Nursing Home Financial Distress Using the Altman Z-Score." Inquiry (United States) 57. Retrieved from https://doi.org/10.1177/0046958020934946 DOI: https://doi.org/10.1177/0046958020934946
Makiwan, Gischanovelia. (2018). "Analisis Rasio Leverage Untuk Memprediksi Pertumbuhan Laba Perusahaan Manufaktur Sub Sektor Makanan Dan Minuman." Bisnis 15(2):147-72. Retrieved from https://doi.org/10.26487/jbmi.v15i2.3530 DOI: https://doi.org/10.26487/jbmi.v15i2.3530
Mangena, Musa, Alba Maria Priego, and Montserrat Manzaneque. (2020). "Bank Power, Block Ownership, Boards and Financial Distress Likelihood: An Investigation of Spanish Listed Firms." Journal of Corporate Finance 64(April). Retrieved from https://doi.org/10.1016/j.jcorpfin.2020.101636 DOI: https://doi.org/10.1016/j.jcorpfin.2020.101636
Olilingo, Fahruddin Zain, and Aditya Halim Perdana Kusuma Putra. (2020). "How Indonesia Economics Works: Correlation Analysis of Macroeconomics in 2010-2019." Journal of Asian Finance, Economics and Business 7(8):117-30. Retrieved from https://doi.org/10.13106/jafeb.2020.vol7.no8.117 DOI: https://doi.org/10.13106/jafeb.2020.vol7.no8.117
Olivier Coibion, Yuriy Gorodnichenko, and Michael Weber. (2019). "HOW DID U.S. CONSUMERS USE THEIR STIMULUS PAYMENTS?" Journal of Chemical Information and Modeling 53(9):1689-99. Retrieved from https://doi.org/10.3386/w27693 DOI: https://doi.org/10.3386/w27693
Paul, Ananya, and Debdas Rakshit. (2020). "Earnings Management and Financial Distress : An Analysis of Indian Textile Companies." Journal of Economics and Public Policy V(3):40-53. Retrieved from https://epp-journal.nmims.edu/wp-content/uploads/2020/08/EPP-August-2020-issue-40-53.pdf
Resosudarmo, Budy P., Abdurohman, Arief A. Yusuf, and Djoni Hartono. (2020). "Spatial Impacts of Fiscal Stimulus Policies during the 2009 Global Financial Crisis in Indonesia." Asia-Pacific Journal of Regional Science (0123456789). Retrieved from https://doi.org/10.1007/s41685-020-00176-2 DOI: https://doi.org/10.1007/s41685-020-00176-2
Sari, Warsani Purnama. (2020). "The Effect of Financial Distress and Growth Opportunities on Accounting Conservatism with Litigation Risk as Moderated Variables in Manufacturing Companies Listed on BEI." Budapest International Research and Critics Institute (BIRCI-Journal) : Humanities and Social Sciences 3(1):588-97. Retrieved from https://doi.org/10.33258/birci.v3i1.812 DOI: https://doi.org/10.33258/birci.v3i1.812
Souri, Mohammad Ehsan, Fatemeh Sajjadian, Reza Sheikh, and Shib Sankar Sana. (2018). "Grey SERVQUAL Method to Measure Consumers' Attitudes towards Green Products - A Case Study of Iranian Consumers of LED Bulbs." Journal of Cleaner Production 177:187-96. Retrieved from https://doi.org/10.1016/j.jclepro.2017.12.105 DOI: https://doi.org/10.1016/j.jclepro.2017.12.105
Sudaryo, Yoyo, Wiara Sanchia Grafita Ryana Devi, Dyah Purnamasari, Astrin Kusumawardani, and Ana Hadiana. (2021). "Pengaruh Current Ratio (CR), Debt To Equity Ratio (DER) Terhadap Net Profit Margin (NPM)." EKONAM: Jurnal Ekonomi 3(1):11-22.
Sudaryo, Yoyo, Mohd Hassan, Che Haat, Jumadil Saputra, Mohd Yusoff Yusliza, Zikri Muhammad, and Abdul Talib Bon. (2021). "Factors That Affect Financial Distress : An Evidence from Jakarta Stock Exchange Listed Companies , Indonesia." (2010). Retrieved from https://d1wqtxts1xzle7.cloudfront.net/66039823/Yoyo_Sudaryo_et_al._2020_SRN_Intellectual_Resources_-with-cover-page-v2.pdf?Expires=1633761489&Signature=CovkhaThgIT7qRbw5uZnAFx84I9MJEjNj0vQF986Nsokoefzb7ylQzpePQSzok2xjPlRy1eCpj1Uhrip9VdIZCVEjKDMbnDwRUzuRM67gabRCTFoaAnfqmNcZJw6lXDhoidGbabgXemRVFAE3SY-3VMiEMSOWN2q4B8GwpgVJNJyy32IUI2Up2uvaIxwgHhmDNoIcF1Kn7i8Gdj4I3lyhTtswYkEiiTRpy87dJ1RCd9cd7gcUzlyF57Au88vHzFYohgyqCWrREarSBaUl2q3h5gFQ6JeDUQePjtkc6Xih596KYHndiCQSJhmsGk46BKQLdGoZqAWC-CS9uOM38wm9Q__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA
Sugiyono. (2014). Metode Penelitian Pendidikan Pendekatan Kuantitatif, Kualitatif, Dan R&D. Bandung: Alfabeta.
Sutrisno. (2012). Manajemen Keuangan Teori, Konsep Dan Aplikasi (8th.). Yogyakarta : Ekonisia.
Wu, Liu, Zhen Shao, Changhui Yang, Tao Ding, and Wan Zhang. (2020). "The Impact of CSR and Financial Distress on Financial Performance-Evidence from Chinese Listed Companies of the Manufacturing Industry." Sustainability (Switzerland) 12(17). Retrieved from https://doi.org/10.3390/su12176799 DOI: https://doi.org/10.3390/su12176799
Wufron. (2017). "Pengaruh Ukuran Perusahaan Terhadap Kinerja Keuangan Serta Implikasinya Terhadap Nilai Perusahaan Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia." Jurnal Wacana Ekonomi 16(3):022-033. Retrieved from https://journal.uniga.ac.id/index.php/JA/article/view/404
Yan, Dawen, Guotai Chi, and Kin Keung Lai. (2020). "Financial Distress Prediction and Feature Selection in Multiple Periods by Lassoing Unconstrained Distributed Lag Non-Linear Models." Mathematics 8(8). Retrieved from https://doi.org/10.3390/math8081275 DOI: https://doi.org/10.3390/math8081275
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Yoyo Susdaryo, Nunung Ayu, Sofiati, Ita Kumaratih, Nandan Limakrisna, Mohd Hassan Che Haat, Zikri Muhammad, Astrin Kusumawardani, Jumadil Saputra
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
