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 72
- Downloads 0
The Relationship Between Sports Activities, Sleep Quality, Stress Levels on Physical Fitness PPMI Male Student Assalaam Sukoharjo
Sports activities are very useful so that the body remains healthy and fit. Besides being physically beneficial, sports activities are also beneficial mentally and socially. The benefits of a healthy body by doing regula...
Parental Involvement in Mattering Early Childhood Digital Literacy: The Role of Balanced Screen time and Access to Technology Evidence from Indonesia
This study aimed to explore the dynamics of early childhood digital literacy in Indonesia and examine the roles of parental involvement, balanced screen time, and access to technology in shaping digital literacy outcomes...
Artificial Intelligence Powered Writing Tools as Adaptable Aids for Academic Writing: Insight from EFL College Learners in Writing Final Project
This research investigates the viewpoint of English as a Foreign Language (EFL) students about using Artificial Intelligence (AI) as writing aids for their culminating project. This study utilized a convenience sampling...
Cost Efficiency Through the use of the EOQ Method
This study aims to analyze and show how to calculate EOQ and prove that the use of the EOQ method can make inventory costs efficient because the number of purchases is not excessive and not lacking, the frequency of purc...
Knowledge, Perception and Uptake of Vaccine of Hepatitis B Virus among Residents of Ondo State
Hepatitis B virus (HBV) is one of the viral diseases that is threatening the global health. This study was carried out to analyze knowledge, perception of hepatitis B virus and its vaccine uptake among residents of ondo...