Proceedings of The International Conference on Business and Economics
Vol. 2 No. 1 (2024): Proceeding of The International Conference on Business and Economics

Effect of Leverage, Profitability and Operating Capacity on Financial Distress in Manufacturing Companies Listed on The Indonesia Stock Exchange

Yolanda Effendy (Unknown)
Awaluddin Awaluddin (Unknown)
Loso Judijanto (Unknown)
Luckhy Natalia Anastasye Lotte (Unknown)
Al-Amin (Unknown)
Hadi Subeno (Unknown)



Article Info

Publish Date
25 May 2024

Abstract

This study aims to examine whether leverage, profitability and operating capacity affect financial distress in food and beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange for the period 2019-2023. The data used is secondary data obtained from www.idx.co.id website. Determination of samples in research using porpusive sampling methods with special criteria. The results of the analysis are known to be a significant value of leverage of 0.000 < 0.05 with a calculation of -4.862 < table 1.992, so the variable leverage has a significant negative effect on financial distress conditions. The significant value on profitability is 0.000 < 0.05 with a count of 9,196 > table 1,992. So the probability variable has a significant positive effect on financial distress conditions. Significant value in Operating Capacity of 0.000 < 0.05 with a calculation of 8.422 > table 1.992, So operating capacity has a significant positive effect on financial distress.

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Journal Info

Abbrev

icbe-untagsmg

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

Management research (such as Marketing Management, Financial Management, HR Management, Operations/Production Management, Business Management, etc.) and/or Entrepreneurship as knowledge development Tourism research (hospitality, hotels and restaurants, tourist destinations, tourism development, tour ...