1Sindy Putri Triliana,2Sutrisno
1,2Management Department – Universitas Islam Indonesia
DOI : https://doi.org/10.47191/ijmra/v6-i2-28Google Scholar Download Pdf
ABSTRACT:
One of the company's efforts is to avoid financial distress which can result in the closure of the company. The purpose of this study was to examine the effect of financial performance on financial distress. Financial distress is measured using Altman's discriminatory theory or often referred to as the Altman Z-score, while company performance consists of profitability as measured by return on assets (ROA), liquidity is measured by current ratio (CR), leverage is measured by debt to equity ratio (DER),and sales growth. The population of this study were 13 automotive and component companies listed on the Indonesia Stock Exchange (IDX) and 12 companies were taken as a sample because one company had incomplete data. Hypothesis testing using multiple regression analysis with a significance level of 0.05. The results showed that profitability (ROA) and liquidity (CR) had a positive and significant effect on financial distress, while leverage (DER) had a significant but negative effect on financial distress. Other results show that free cash flow and sales growth have no significant effect on financial distress.
KEYWORDS:financial distress, profitability, liquidity, leverage, free cash flow, saes growth
REFERENCES
1) Adiyanto, Y. (2021). The Influence of Institutional Ownership, Liquidity, and Company Size on Financial Distress (Empirical
Study on Property & Real Estate Sub Sector Companies Listed on The Indonesia Stock Exchange 2015 - 2018). International
Journal of Economics, Management, Bussiness and Social Science(IJEMBIS), 1(1), 111-120.
2) Afiezan, A., Gunarsih, J., Salim, A., & Etania, C. (2021). The Influence of Operating Cash, Liquidity, Leverage and Profitability
on Financial Distress on Mining Sector Companies Listed on Idx Period 2015-2019. Budapest International Research and
Critics Institute-Journal (BIRCI-Journal), 4(3), 3492-3501.
3) Afrianti, F., Uzliawati, L., & S, A. N. (2022). The Effect Of Leverage, Capital Intensity, And Sales Growth On Tax Avoidance
With Independent Commissioners As Moderating Variables (Empirical Study On Manufacturing Companies Listed On The
Indonesia Stock Exchange In 2017-2020). International Journal of Science, Technology & Management, 3(2), 337-348.
4) Aisyah, N. N., Kristant, F. T., & Zultilisna, D. (2017). Pengaruh rasio Likuiditas, Rasio Aktivitas, Rasio Profitabilitas, dan Rasio
Leverage terhadap Financial Distress (Studi pada Perusahaan Tekstil Dan Garmen yang terdaftar di Bursa Efek Indonesia
tahun 2011-2015). e-Proceeding of Management, 4(1), 411-419.
5) Andika, L., & Nuryaman. (2022). Effect of Leverage, Profitability and Firm Size on Financial Distress (Empirical Study on
Transportation Companies Listed on the Indonesia Stock Exchange 2016-2020). Budapest International Research and
Critics Institute-Journal (BIRCI-Journal), 5(3), 25237-25247.
6) Anggraeni, I. G., & Rahyuda, H. (2020). The Influence of Company Size and Capital Structure on Company Profitability and
Value in Food and Beverage Companies in Indonesia Stock Exchange. American Journal of Humanities and Social Sciences
Research (AJHSSR), 4(9), 236-243.
7) Arifin, D. S., Masud, A., Kalsum, U., & Makkulau, A. R. (2021). The Influence of Liquidity, Leverage, Company Size and
Profitability on Financial Distress. International Journal of Business and Social Science Research, 2(6), 11-17.
8) Asfali, I. (2019). Pengaruh Profitabilitas, Likuiditas, Leverage, Aktivitas, Pertumbuhan Penjualan Terhadap Financial
Distress Perusahaan Kimia. Jurnal Ekonomi dan Manajemen, 20(2), 56-66.
9) Brigham, E. F., & Houston, J. F. (2006). Dasar-Dasar Manajemen Keuangan (10 ed.). Jakarta: Salemba Empat.
10) Christine, D., Wijaya, J., Chandra, K., Lubis, M. S., & Nasution, I. A. (2019). Pengaruh Profitabilitas, Leverage, Total Arus Kas
dan Ukuran Perusahaan terhadap Financial Distress pada Perusahaan Property dan Real Estate yang Terdaftar di Bursa
Efek Indonesia Tahun 2014-2017. Jurnal Ekonomi & Ekonomi Syariah, 2(2), 340-351.
11) Dirman, A. (2020). Financial Distress: The Impact of Profitability, Liquidity, everage, Firm Size, and Free Cash Flow.
International Journal of Business, Economics and Law,, 22(1), 17-25.
12) Diyanto, V. (2020). The Effect of Liquidity, Leverage and Profitability on Financial Distress. Indonesian Journal of Economics,
Social, and Humanities, 2(2), 127-133.
13) Dwiantari, R. A., & Artini, L. G. (2021). The Effect of Liquidity, Leverage, and Profitability on Financial Distress (Case Study
of Property and Real Estate Companies on the IDX 2017-2019). American Journal of Humanities and Social Sciences
Research (AJHSSR), 5(1), 367-373.
14) Erayanti, R. (2019). Pengaruh Likuiditas, Profitabilitas dan Leverage terhadap Prediksi Financial Distress. JRAP (Jurnal Riset
Akuntansi dan Perpajakan), 6(1), 38-50.
15) Fahmi, I. (2015). Analisis Laporan Keuangan. Bandung: CV. ALFABETA.
16) Fatimah, Toha, A., & Prakoso, A. (2019). The influence of Liquidity, Leverage and Profitability Ratio on Financial Distress
(On Real Estate and Property Companies Listed in Indonesia Stock Exchange in 2015-2017). Owner: Riset & Jurnal
Akuntansi, 3(1), 103-115.
17) Giarto, R. V., & Fachrurrozie. (2020). The Effect of Leverage, Sales Growth, Cash Flow on Financial Distress with Corporate
Governance as a Moderating Variable. Accounting Analysis Journal, 9(1), 15-21.
18) Hastiarto, O., Umar, H., & Indriani, A. (2021). The Effect of Liquidity, Leverage, and Profitability on Financial Distress with
Audit Committee as a Moderating Variable. International Journal of Current Science Research and Review, 4(10), 1304-
1315.
19) Isdina, S. H., & Putri, W. W. (2021). Pengaruh Laba dan Arus Kas terhadap Kondisi Financial Distress (Studi Kasus pada
Perusahaan Sub-Sektor Perdagangan Eceran yang Terdaftar di BEI 2014-2018). JIAKES (Jurnal Ilmu Akuntansi dan
Kesatuan), 9(1), 147-158.
20) John, A. T., & Ogechukwu, O. L. (2018). Corporate Governance and Financial Distress in the Banking Industry: Nigerian
Experience. Journal of Economics and Behavioral Studies, 10(1), 182-193.
21) Larasati, H., & Wahyudin, A. (2019). The Effect of Liquidity, Leverage, and Operating Capacity on Financial Distress with
Managerial Ownership as a Moderating Variable. Accounting Analysis Journal, 8(3), 214-220.
22) Liahmad, Rusnindita, K., Utami, Y. P., & Sitompul, S. (2021). Financial Factors and Non-Financial to Financial Distress
Insurance Companies That Listed in Indonesia Stock Exchange. Budapest International Research and Critics InstituteJournal (BIRCI-Journal), 4(1), 1305-1312.
23) Minanari. (2022). The Influence of Managerial Ownership, Profitability, and Leverage on Financial Distress (Empirical Study
on Property and Real Estate Companies Listed on the Indonesia Stock Exchange (IDX) 2016-2019). International Journal of
Environmental, Sustainability, and Social Sciences, 3(2), 351-358.
24) Moch, R., Prihatni, R., & Buchdadi, A. D. (2019). The Effect of Liquidity, Profitability, and Solvability to the Financial Distress
of Manufactured Companies Listed on Indonesia Stock Exchange (IDX) Period of Year 2015-2017. Academy of Accounting
and Financial Studies Journal, 23(6), 1-16.
25) Nabawi, M. (2020). Pengaruh Leverage, Profitabilitas, Aktivitas, Growth Firm, terhadap Kondisi Financial Distress. Jurnal
Ilmu dan Riset Akuntansi, 9(1), 1-18.
26) OCBC NISP. (2021, July 21). Mengenal Financial Distress, Jenis, Penyebab & Cara Mencegah. Retrieved November 23, 2022,
from ocbcnisp.com: https://www.ocbcnisp.com/id/article/2021/07/21/financial-distress-adalah
27) Oktasari, D. P. (2020). The Effect of Liquidity, Leverage and Firm Size of Financial Distress. East African Scholars
Multidisciplinary Bulletin, 3(9), 15-19.
28) Purba, S. I., & Muslih, M. (2018). Pengaruh Kepemilikan Institusional, Intellectual Capital, dan Leverage terhadap Financial
Distress (Studi Kasus pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2014-2017). Journal
Accounting and Finance, 2(2), 27-40.
29) Purwaningsih, E., & Safitri, I. (2022). Pengaruh Profitabilitas, Likuiditas, Leverage, Rasio Arus Kas, dan Ukuran Perusahaan
terhadap Financial Distress. JAE: Jurnal Akuntansi dan Ekonomi, 7(2), 147-156.
30) Purwanti, D., & Syarif, A. D. (2022). Analysis of the Effect Liquidity, Leverage, Profitability and Sales Growth on Financial
Distress (Altman Z-Score) (Empirical Study of Retail Sub – Sector Companies Listed on the Indonesia Stock Exchange (IDX)
2015-2019. Journal of Economics, Finance and Management Studies, 5(3), 721-729.
31) Purwanto, H., & Putra, R. N. (2022). The Effect of Leverage, Firm Size, Profitability, and Liquidity on Hedging Decisions.
Journal of Accounting Inquiry, 1(1), 033-043.
32) Ramadhanti, N. C., & Subagyo. (2022). Pengaruh Corporate Governance, Cash Flow, dan Profit terhadap Financial Distress
Perusahaan Manufaktur di Bursa Efek Indonesia. Trilogi Accounting and Business Research, 3(1), 13-33.
33) Restianti, T., & Agustina, L. (2018). The Effect of Financial Ratios on Financial Distress Conditions in Sub Industrial Sector
Company. Accounting Analysis Journal, 7(1), 25-33.
34) Rochend, L. R., & Nuryaman. (2022). Pengaruh Sales Growth, Likuiditas dan Ukuran Perusahaan terhadap Financial
Distress. Owner: Riset & Jurnal Akuntansi, 6(4), 3465-3473.
35) Rudianto. (2013). Akuntansi Manajemen Informasi untuk Pengambilan Keputusan Strategis. Jakarta: Erlangga.
36) Saputri, L., & Asrori. (2019). The Effect of Leverage, Liquidity and Profitability on Financial Distress with the Effectiveness
of the Audit Committee as a Moderating Variable. Accounting Analysis Journal, 8(1), 38-44.
37) Sariroh, H. (2021). Pengaruh Likuiditas, Leverage, Profitabilitas, dan Ukuran Perusahaan terhadap Financial Distress di
Sektor Trade, Service, and Investment. Jurnal Ilmu Manajemen, 9(3), 1227-1240.
38) Sayari, N., & Mugan, C. S. (2017). Industry Specific Financial Distress Modeling. BRQ Business Research Quarterly, 20(1),
45-62.
39) Septiana, A. (2019). Analisis Laporan Keuangan (1 ed.). Jawa Timur: DUTA MEDIA PUBLISHING.
40) Septiani, N. M., & Dana, I. M. (2019). Pengaruh Likuiditas, Leverage, dan Kepemilikan Institusional terhadap Financial
Distress pada Perusahaan Property dan Real Estate. E-Jurnal Manajemen, 8(5), 3110-3137.
41) Sugiharto, B., Putri, T. E., & Nur’alim, R. M. (2021). The Effect of Liquidity, Leverage, and Sales Growth on Financial Distress
with Profitability as Moderating Variables (Case Study of Manufacturing Companies Listed on the Indonesia Stock
Exchange 2017–2019). Journal of Accounting for Sustainable Society (JASS), 3(1), 45-69.
42) Suryani. (2020). Pengaruh Profitabilitas, Leverage, Sales Growthdan Ukuran Perusahaan terhadap Financial Distress. Jurnal
Online Insan Akuntan, 5(2), 229-244.
43) Susanti, W., & Takarini, N. (2022). Pengaruh Likuiditas, Profitabilitas, Leverage, dan Aktivitas dalam Memprediksi Financial
Distress pada Perusahaan Subsektor Retail Trade yang Terdaftar di BEI. Ekonomis: Journal of Economics and Business, 6(2),
488-497.
44) Syuhada, P., Muda, I., & Rujiman. (2020). Pengaruh Kinerja Keuangan dan Ukuran Perusahaan Terhadap Financial Distress
pada Perusahaan Property dan Real Estate di Bursa Efek Indonesia. Jurnal Riset Akuntansi dan Keuangan, 8(2), 319-336.
45) Wahyuningtiyas, A., & Retnani, E. D. (2020). Pengaruh Likuiditas, Profitabilitas, Leverage, dan Arus Kas terhadap Financial
Distress. Jurnal Ilmu dan Riset Akuntansi, 9(8), 1-15.
46) Wangsih, I. C., Yanti, D. R., Yohana, Kalbuana, N., & Cahyadi, C. I. (2021). Influence of Leverage, Firm Size, and Sales Growth
on Financial Distress (Empirical Study on Retail Trade Sub-Sector Companies Listed in Indonesia Stock Exchange Period
2016-2020). International Journal of Economics, Business and Accounting Research (IJEBAR), 5(4), 180-194.
47) Yadiati, W. (2017). The Influence of Profitability on Financial Distress: A Research on Agricultural Companies Listed in
Indonesia Stock Exchange. International Journal Scientific & Technology Research, 6(11), 233-237.
48) Yasar, B., Martin, T., & Kiessling, T. (2020). An Empirical Test of Signalling Theory. Management Research Review, 43(11),
1309-1335.
49) Zees, N., & Kawatu, F. S. (2022). Pengaruh Arus Kas dan Laba terhadap Financial Distress pada Perusahaan BUMN yang
Terdaftar di Bursa Efek Indonesia. JAIM : Jurnal Akuntansi Manado, 3(3), 425-433.
VOLUME 06 ISSUE 02 FEBRUARY 2023
There is an Open Access article, distributed under the term of the Creative Commons Attribution – Non Commercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting and building upon the work for non-commercial use, provided the original work is properly cited.
Our Services and Policies
Authors should prepare their manuscripts according to the instructions given in the authors' guidelines. Manuscripts which do not conform to the format and style of the Journal may be returned to the authors for revision or rejected.
The Journal reserves the right to make any further formal changes and language corrections necessary in a manuscript accepted for publication so that it conforms to the formatting requirements of the Journal.
International Journal of Multidisciplinary Research and Analysis will publish 12 monthly online issues per year,IJMRA publishes articles as soon as the final copy-edited version is approved. IJMRA publishes articles and review papers of all subjects area.
Open access is a mechanism by which research outputs are distributed online, Hybrid open access journals, contain a mixture of open access articles and closed access articles.
International Journal of Multidisciplinary Research and Analysis initiate a call for research paper for Volume 07 Issue 05 (May 2024).
PUBLICATION DATES:
1) Last Date of Submission : 26 May 2024 .
2) Article published within a week.
3) Submit Article : editor@ijmra.in or Online
Why with us
1 : IJMRA only accepts original and high quality research and technical papers.
2 : Paper will publish immediately in current issue after registration.
3 : Authors can download their full papers at any time with digital certificate.
The Editors reserve the right to reject papers without sending them out for review.
Authors should prepare their manuscripts according to the instructions given in the authors' guidelines. Manuscripts which do not conform to the format and style of the Journal may be returned to the authors for revision or rejected. The Journal reserves the right to make any further formal changes and language corrections necessary in a manuscript accepted for publication so that it conforms to the formatting requirements of the Journal.