scholarly journals The Influence of Liquidity, Leverage, Company Size and Profitability on Financial Distress

Author(s):  
Andi Runis ◽  
Dedy Samsul Arifin ◽  
Arifuddin Masud ◽  
Ummy Kalsum

This study aims to empirically examine the factors that influence Financial Distress in Property and Real Estate Companies. This study was tested with four independent variables, namely Liquidity (Current Ratio), Leverage (Debt Equity Ratio), Firm Size (ln of Total Assets), and Profitability (Return on Assets) using purposive sampling technique the authors chose seventeen companies as samples. This study uses panel data analysis obtained from financial reports and Annual Reports for 5 years. This study uses secondary data with the help of the Eviews 9 application. The results found that the Leverage Variable (Debt Equity Ratio) has a positive and significant influence on Financial Distress while Liquidity (Current Ratio), Company Size (ln of Total Assets), and Profitability Variables (Return). on Assets) has a negative and significant effect on Financial Distress.

2021 ◽  
Vol 9 (3) ◽  
pp. 1227-1240
Author(s):  
Hasivatus Sariroh

This study is a quantitative study that aims to determine the effect of the current ratio, debt to asset ratio, return on assets, and firm size on financial distress. Logistic regression method was used to test all relationships between independent variables and dependent variables with nominal/ordinal data scales. The dependent variable in this study is financial distress. The independent variables in this study are liquidity, leverage, profitability and firm size. This study uses secondary data from annual reports of trading, service, and investment companies listed on the Indonesia Stock Exchange from 2016 to 2018. The population used is companies in the trade, services, and investment sectors listed on the Indonesia Stock Exchange (IDX). from 2016 to 2018 with a total of 162 companies selected using purposive sampling technique. The results of hypothesis testing indicate that the current ratio, debt to asset ratio, return on assets, and firm size have no effect on the company's financial distress. From research conducted by researchers, for management to be used as a basis to take corrective actions if there are indications that the company experiencing financial distress. For investors, to be used as a basis in making the right decision to invest in a company.


2020 ◽  
Vol 12 (1) ◽  
pp. 1-20
Author(s):  
Maria Jeannifer Lie ◽  
MARIA STEFANI OSESOGA

Abstract- The objective of the research is to obtain empirical evidence of the effect of Return on Assets, Current Ratio, Debt to Equity Ratio, and Managerial Ownership towards Dividend Payout Ratio. Companies need to know any factors to determine the optimal dividend policy. The sample in this research is selected by using purposive sampling method and the secondary data used in this research was analyzed by using multiple regression method. The total amount of sample in this research is 13 firms which is registered as manufacturing sector in BEI for the year 2015-2017; published financial reports using Rupiah currency; audited by independent auditor; published financial reports for January 1 until December 31 periods, have positive net income, declared cash dividend, did not do stock split/ reverse stock split; and have managerial ownership on shareholders structure. The result of this research are Return on Assets, Current Ratio, Debt to Equity Ratio, and Managerial Ownership simultaneously has significant effect towards Dividend Payout Ratio. Partially, variable Return on Assets, and Managerial Ownership have positive significant effect on Dividend Payout Ratio. While Current Ratio and Debt to Equity Ratio does not have significant effect towards Dividend Payout Ratio.


2019 ◽  
Vol 5 (1) ◽  
pp. 137-148
Author(s):  
Sarah Maqfirah ◽  
Wida Fadhlia

This study aims to (1) To determine the effect of intellectual capital on the profitability of Islamic commercial banks, (2) To determine the effect of company size on the profitability of Islamic commercial banks. (3) To determine the effect of intellectual capital and company size together on the profitability of a Sharia Commercial Bank. The population in this study were 14 Islamic commercial banks in Indonesia. The sampling technique in this study used purposive sampling technique. This study is a study that uses secondary data for research. Secondary data in the form of annual reports and financial reports obtained on the website of each Islamic commercial bank. The conclusions resulting from this study are (1) Intellectual capital affects the profitability of Islamic commercial banks, (2) Firm size influences the profitability of Islamic commercial banks, (3) Intellectual capital and company size together influence profitability.


2021 ◽  
Vol 25 (3) ◽  
pp. 656-670
Author(s):  
Mashudi Mashudi ◽  
Risdiana Himmati ◽  
Id Fitria Rahayu Ardillah ◽  
Citra Sarasmitha

This research is based on financial distress or financial distress, which negatively impacts the company, marked by its inability to fulfill its obligations at maturity. This phenomenon can be an early warning related to further problems, and financial distress can be overcome by predicting as early as possible. This prediction is essential for management and company owners to anticipate potential bankruptcy. The formulations in this study include whether inflation affects predicting financial distress in companies in the Infrastructure, Utilities, and Transportation sectors listed on the IDX for the 2015-2020 period. And Whether the financial ratios (Current Ratio, Debt To Equity Ratio, Total Asset Turn Over, Return on Equity, Price Book Value) affects predicting financial distress in Infrastructure, Utilities, and Transportation sector companies listed on the IDX the 2015-2020 period. This study uses a quantitative approach and the type of associative research, and the source data is secondary data with a sample of 10 companies. The sampling technique used purposive sampling. Data processing in this study uses E-Views 9 with Panel Data Regression analysis techniques. This study can conclude that the variables of inflation, current ratio, price-book value, and total turnover significantly affect financial distress in the Infrastructure sector companies: utilities and Transportation. Meanwhile, the debt to equity ratio and return on equity variables did not substantially affect financial distress in the Infrastructure, Utilities, and Transportation sector companies in 2015-2020.DOI: 10.26905/jkdp.v25i3.5858


2020 ◽  
Vol 9 (1) ◽  
pp. 106
Author(s):  
Muhammad Tri Saputro ◽  
Permata Dian Pratiwi

The purpose of this study is to further investigate the effect of Return On Equity, Current Ratio, Company Size against Debt to Equity Ratio in the company transportation listed on the Indonesia Stock Exchange during the 2014-2017 period. That ratio used, namely Return On Equity, Current Ratio, Company Size and Debt to Equity Ratio. The method used is using panel data linear regression method. The population used in this study is a registered transportation company on the Indonesia Stock Exchange in the 2014-2017 period, published data and financial reports in full and have a positive net profit in the 2014-2017 period. Based on these criteria, the sample used in this study was 9 companies with population of 35 companies. The sampling technique uses a purposive technique sampling. Data were tested using a classic assumption test, panel data regression analysis, and test hypothesis. The results of this study indicate that Return On Equity, Current Ratio, Size The company has no significant effect on Debt to Equity Ratio.


2019 ◽  
Vol 3 (5) ◽  
pp. 19
Author(s):  
Jenni Suryana ◽  
Indra Widjaja

This research aims to find out the effects of Current ratio (CR), Debt to equity ratio (DER), Net profit margin (NPM) dan Earning per share (EPS) toward stock price of the construction and building company which is listed in Indonesia Stock Exchange during 2013-2017.Sampling technique used is purposive sampling with criteria as (1) construction and building company which is listed in Indonesia Stock Exchange over the period from 2013 to 2017; (2) construction and building company who provided financial reports during 2013-2017; (3) Sample company still operate during research periods from 2013-2017. Based on this criteria, 9 samples were acquired. Data used in this research is secondary data obtained from www.idx.co.id and www.finance.yahoo.com. While the method of analysis used in this research is a method of regression anaylsis of panel data with fixed effect model.The result of this study show that CR and DER don’t have significant impact to the stock price of building and construction company; NPM and EPS have a significant price on stock price of building and construction company. Prediction capability of these four variables toward stock price is 92.29% as indicated by adjusted R square value, where the rest 7.71% is affected by others factors which was not entered to this research model.


2020 ◽  
Vol 1 (4) ◽  
pp. 291-299
Author(s):  
Euodia Stefani Handiyanti

This study aims to examine and prove the effect of return on assets, current ratio, debt to equity ratio partially or simultaneously on profit growth in automotive companies listed on the Indonesia Stock Exchange. The data source used in this study is secondary data, which takes and quotes from financial reports obtained on the official website of the Indonesia Stock Exchange and financial reports on the official websites of each company. The sample selection used purposive sampling methodand obtained a number of 45 automotive companies. The analysis technique used in this research is the classical assumption test and multiple regression analysis. The data in this study were processed using the SPSS version 25 program. The partial test results (t test) show that the Return on Assets and Debt to Equity Ratio have a significant effect on profit growth in automotive companies listed on the Indonesia Stock Exchange for the period 2014-2018. Meanwhile, the Current Ratio has no significant effect on profit growth in automotive companies listed on the Indonesia Stock Exchange for the 2014-2018 period. Simultaneous test results (Test F) show that the variables return on assets, current ratio, debt to equity ratio together have a significant effect on profit growth in automotive companies listed on the Indonesia Stock Exchange for the period 2014-2018.


2020 ◽  
Vol 8 (2) ◽  
pp. 143
Author(s):  
Nana Umdiana ◽  
Dyah Lupita Sari

This study aims to analyze funding decisions on capital structure through trade off theory in property and real estate companies listed on the Indonesia Stock Exchange for the period 2015-2018. Profitability is measured using the return on equity ratio, asset structure is measured by fixed assets ratio and funding decisions are measured by debt. to equity ratio. The population of this research is property and real estate companies listed on the Indonesia Stock Exchange for the period 2015-2018. The data analyzed is secondary data in financial reports or annual reports. The sample selection used purposive sampling method and the sample obtained in this study were 40 data from 10 companies. In this research, the analytical method used is descriptive statistics, classical assumption test, multiple regression analysis and statistical test. The results of the analysis in this study indicate that there is no effect of profitability on funding decisions, there is an effect of asset structure on funding decisions. This shows that the asset structure influences the company's decision making in funding.


Author(s):  
Bawon Triono ◽  
Dwi Artati

This study aimed to examine and analyze the effect of Total Asset Turn Over (TATO), Current Ratio (CR), Debt to Equity Ratio (DER) and Return On Assets (ROA) on Dividend Policy in companies included in Investor33 index 2015-2017 . The sampling technique used a purposive sampling method, which is a sampling technique based on a certain criterion, so as to get a sample of 19 companies from a total population of 33 companies. The results of this study indicated that the total asset turnover variable has a positive effect on the company's dividend policy, the current ratio variable has a negative effect on the company's dividend policy, the debt to equity ratio variable has a negative effect on the company's dividend policy, the return variable on assets has a positive effect on the company's dividend policy, and the four variables also influence jointly on the company's dividend policy


2021 ◽  
Vol 8 (2) ◽  
Author(s):  
Meliani Imanah ◽  
Alfinur ◽  
Supami Wahyu Setiyowati

This study aims to analyze the effect of debt to equity ratio and current ratio on firm value with return on assets as an intervening variable on food and beverages companies listed on the Indonesia Stock Exchange for the period of 2016-2018. The study uses secondary data from the annual report through access to www.idx.co.id. Data were analyzed using path analysis. The total sample of 13 companies and the method of taking sample members used is purposive sampling. The variables of this study consisted of debt to equity ratio and current ratio as exogenous variables, firm value as endogenous variables, and return on assets as intervening variables. The analysis shows that the debt to equity ratio, current ratio and return on assets have a positive effect on firm value. Debt to equity ratio and current ratio also have a positive effect on return on assets. Based on the results of the path analysis of the implications of this research that return on assets can not affect the relationship between debt to equity ratio and current ratio to the firm value so that it can provide input to researchers. It is better to add research periods and use a sample of several other sectors and can also use variables others that can strengthen the results of previous studies


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