FACTORS AFFECTING FINANCIAL DISTRESS IN NON-CYCLICAL CONSUMER COMPANIES LISTED ON IDX
Article Sidebar
Main Article Content
Abstract
This study empirically tests the influence of profitability, leverage, firm size, and corporate social responsibility (CSR) on financial distress. The study was conducted on consumer non-cyclical companies listed on the IDX during the 2020-2022 period. This study uses quantitative data obtained from financial reports, annual reports, and sustainability reports published by companies. The amount of data studied was 111 observations, which met the criteria as research samples based on the purposive sampling technique. The data was processed using the IBM SPSS version 25 program. This research shows that profitability has a significant positive effect on financial distress, while leverage significantly negatively affects financial distress. Meanwhile, firm size and CSR do not have a significant influence on financial distress.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
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.
IJAEB by Graduate Program of Universitas Tarumanagara is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.. Permissions beyond the scope of this license may be available at https://journal.untar.ac.id/index.php/ijaeb
References
www.cnbcindonesia.com
www.idx.co.id
Hutauruk, M.R., Mansyur, M., Rinaldi, M. dan Situru, Y.R., 2021. Financial Distress Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia. JPS (Jurnal Perbankan Syariah), 2(2), pp.237-246.
Awaloedin, D. T., & Nugroho, R. (2019). Pengaruh Ukuran Perusahaan, Rasio Utang dan Umur Perusahaan terhadap Biaya Utang (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa. Jurnal Rekayasa Informasi, Vol. 8, No.1, April 2019, 1, 52–69.
Farooq, M., Noor, A., & Qureshi, F. S. (2021). The Impact of Corporate Social Responsibility on Financial Distress: Empirical Evidence. Pacific Accounting Review. Vol. 33 No. 3, pp. 376-396. https://doi.org/10.1108/PAR-10-2020-0196.
Praptoyo, S. (2019). Pengaruh Tanggung Jawab Sosial Entitas Terhadap Kinerja Keuangan. Jurnal Ilmu dan Riset Akuntansi : Volume 8, Nomor 7, Juli 2019.
Andreani, S., & Yuniarwati. (2022). Pengaruh Rasio Keuangan Terhadap Kondisi Financial Distress di Indonesia. Jurnal Multiparadigma Akuntansi, Volume IV No. 1/2022 Edisi Januari Hal: 254-263. https://doi.org/10.24912/jpa.v4i1.17289.
Dirman, A. (2020). Financial Distress: The Impacts of Profitability, Liquidity, Leverage, Firm Size and Free Cash Flow. International Journal of Business, Economics and Law, Vol. 22, Issue 1.
Yazdanfar, D., & Ohman. P. (2020). Financial distress determinants among SMEs: empirical evidence from Sweden. Journal of Economic Studies Vol. 47 No. 3, 2020 pp. 547-560. https://doi.org/10.1108/JES-01-2019-0030.
Azhar, N.I.H., Lokman, N., Alam, M.M., & Said, J. (2021) Factors Determining Z-score and Corporate Failure in Malaysian Companies. International Journal of Economics and Business Research, 21(3), 370-386. (online) http://dx.doi.org/10.1504/IJEBR.2021.114381.
Nuryaman, & Andika, L. (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) Volume 5, No 3, August 2022, Page: 25237-25247. https://doi.org/10.33258/birci.v5i3.6567.
Adinata, G. (2019). CSR Expenditures, Financial Distress Prediction, and Reputation: A Pathway Analysis. Perspektif Akuntansi Volume 2 Nomor 1 (Februari 2019), hal. 01-18. https://doi.org/10.24246/persi.v2i1.p1-18 http://ejournal.uksw.edu/persi.
Zelie, M. E., & Wassie, A. F. (2019). Examining the Financial Distress Condition and Its Determinant Factors: A Study on Selected Insurance Companies in Ethiopia. World Journal of Education and Humanities. http://dx.doi.org/10.22158/wjeh.v1n1p64.
Shi, Y., & Dr. Li, X. (2021). Determinants of financial distress in the European air transport industry: The moderating effect of being a flag-carrier. PLoS ONE 16(11): e0259149. https://doi.org/10.1371/journal.pone.0259149.
Pratiwi, Y, E., & Sudiyatno, B. (2022). Pengaruh Likuiditas, Leverage, dan Profitabilitas terhadap Financial Distress. Jurnal Ilmiah Akuntansi dan Keuangan. Vol. 5 No. 3 Oktober 2022.
Sinambela, T., & Marpaung, A. I. (2019). The influence of profit and cash flow to predict financial distress. Dinasti International Journal of Management Science, 1(2), 191–203.
Nurdiansari, R. (2023). The Effect of Profitability, Leverage and Company Size on Financial Distress with Institutional Ownership as a Moderating Variable in Restaurant, Hotel and Tourism Sector Companies Listed on the Indonesia Stock Exchange for the 2016-2020 Period. West Science Accounting and Finance Vol. 1, No. 01, January, pp. 1~14.
Koohi, H., Ashrafi, M., Abbasi, E., & Davaji, G. J. (2022). The Effect of Corporate Social Responsibility Performance on Financial Distress over the Life Cycle Using the Directional Distance Function. Iranian Journal of Finance, 2022, Vol. 6, No.3, pp. 54-82. https://doi.org/10.30699/IJF.2022.294682.1251.
Yasmine, Q. A., & Alvia (2023). Analisis Faktor Determinan Financial Distress (Studi Empiris Pada Perusahaan Go Public Di Indonesia). Jurnal Ekonomi, Akuntansi dan Manajemen. Vol 2 No 3. https://doi.org/10.30640/inisiatif.v2i3.112
Khan, N., Malik, A. Q., Saghir. A., Rasheed. H. M., & Husnain. M. (2021). Does corporate social responsibility reduce financial distress? Evidence from emerging economy. Management Science Letters. https://doi.org/10.5267/j.msl.2021.4.007.
Sameer, I. (2021). Impact of Corporate Social Responsibility on Organization’s Financial Performance: Evidence from Maldives Public Limited Companies. Sameer Futur Bus J 2021, 7(1):29 https://doi.org/10.1186/s43093-021-00075-8.