Jurnal Bisnis dan Akuntansi
Vol 20 No 1 (2018): Jurnal Bisnis dan Akuntansi

THE INFLUENCE OF LIQUIDITY, CAPITAL STRUCTURE, PROFITABILITY AND CASH FLOWS ON THE COMPANY’S FINANCIAL DISTRESS

MUHAMMAD REZA FAHLEVI (Trisakti School of Management)
AAN MARLINAH (Trisakti School of Management)



Article Info

Publish Date
03 Jul 2019

Abstract

Financial distress is a complicated phase and multidimensional problem facing by the company. Since it leads the company on the possibility of bankruptcy, this situation needs immediately to be recovered. This study aims to determine the factors that influence the company's financial distress. There are ten variables in this study which are classified into four categories: liquidity, capital structure, profitability and cash flows. This study used financial statement data of manufacturing company which is listed in Indonesia Stock Exchange during the threeyear study period from 2011 to 2013. There are some criteria in choosing the representative sample so that the sum of the companies are 90 companies or equal to 270 financial statements data. The empirical findings show that there are only three variables that influence the company’s financial distress. The significant variables are current ratio (liquidity), return on assets (profitability) and cash flow ratio (cash flow).

Copyrights © 2018






Journal Info

Abbrev

JBA

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Bisnis dan Akuntansi is biannual publication issued in the month of June and December. Jurnal Bisnis dan Akuntansi is a scientific journal which prioritizes the publication of articles (research and non-research based) regarding to business and accounting issues that deal with social issues ...