Determinants of financial distress of Indonesian manufacturing companies.

Autor: Yanto, Heri, Kiswanto, Baroroh, Niswah, Ismail, Norashikin, Rahim, Nurhazrina Mat
Předmět:
Zdroj: AIP Conference Proceedings; 2023, Vol. 2765 Issue 1, p1-8, 8p
Abstrakt: This research analyzes and proves the influence of leverage, governance, and activities ratio on the corporate financial distress. This research uses 149 manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018. This research uses purposive sampling and chooses 30 companies at last. The data analysis is conducted using descriptive statistical and logistic regression tests. The final results have found the leverage and size of the board of directors (aspects of corporate governance) have a significant influence on the financial distress. The activities are not able to moderate the effect of leverage and corporate governance on the financial distress. The conclusion of this research is that the financial distress can be avoided by reducing the financing that comes from debt. On the other hand, increasing the size of the company's board of directors can also reduce and prevent the company from the financial distress. The originality of this research is the presence of the activity variable in moderating the influence of the independent towards the dependent variable. [ABSTRACT FROM AUTHOR]
Databáze: Complementary Index