Company Performance and Financial Distress in Automotive and Component Companies Listed on the Indonesia Stock Exchange
Journal Title: International Journal of Multidisciplinary Research and Analysis - Year 2023, Vol 6, Issue 02
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.
Authors and Affiliations
Sindy Putri Triliana, Sutrisno
Keywords
Related Articles
- EP ID EP713231
- DOI 10.47191/ijmra/v6-i2-28
- Views 41
- Downloads 0
Hydrochemical and Bacteriological Studies of Streams in Calabar South Local Government Area, Nigeria
This paper presents the results of hydro-chemical and bacteriological analysis of water obtained from streams in Calabar South Local Government Area in Nigeria. Water samples were collected from five different streams in...
Study of Body Attitude Criteria of Indoor Hockey Players Based on Body Height to Obtain Accurate Passing Techniques
In this study, the authors analyzed the posture of indoor hockey players for ball passing techniques based on posture which consists of initial attitude, implementation attitude, and final attitude. These three gestures...
Trade deficit impede Nepalese economic growth : an analysis from review perspective
The current study completely delves into the comprehensive identification, assessment, and mitigation of trade deficit in Nepal. The objective of this article is to study and analyze the growth, composition, and direct...
Discipline as a Tool for Children's Personality Formation
In the implementation of education, there are still educators (parents, teachers and society) who are less aware that discipline can influence the formation of a child's personality. Mistakes and inaccuracies in providin...
Mortgage Encumbrance of Ships in Bank Credit Agreements Reviewed From Legal Certainty
The bank when granting or disbursing credit is usually preceded by an agreement called a draft loan agreement. In thecredit agreement, collateral is included, as a guarantee when repaying credit if the debtor defaults. I...