The Effect of Profitability, Liquidity, and Leverage on Financial Distress in Mining Companies Listed on the Indonesia Stock Exchange

Autor: Rosita Umamah, Nurasik Nurasik
Rok vydání: 2023
Předmět:
Zdroj: Academia Open. 8
ISSN: 2714-7444
DOI: 10.21070/acopen.8.2023.3677
Popis: In the era of the Industrial Revolution 4.0, competition between companies is increasing because of the number of new companies that began to emerge. This condition requires a company to always be ready to compete and think about how the right business strategy to continue to maintain the company so that bankruptcy does not occur. The mining sector became a fairly depressed sector until the first quarter of 2019. If a company is unable to compete then the company will experience losses, which can ultimately make a company experience financial distress reflected in their net profit that fell quite deeply. This research aims to find out the effect of profitability on financial distress, the influence of liquidity on financial distress, and the influence of leverage on financial distress on mining sector companies listed in the IDX for the period 2018 - 2020. This research method is Quantitative research, The population that will be observed in this study is all mining sector companies listed on the IDX during the period 2016-2018. The population in this study as many as 41 companies originating from the mining sector, Sampling techniques using Purposive sampling Techniques, The data source used in this study is secondary data. Data analysis uses a quantitative research approach. The results of the study concluded that partially independent variables measured using profitability ratios, had no effect on financial distress in mining sector companies listed in the IDX for the period 2018 - 2020, Partially independent variables measured using liquidity ratios, had no effect on financial distress in mining sector companies listed in the IDX period 2018 - 2020, Partially independent variables measured using Leverage affects dependent variables as measured using financial distress in mining sector companies listed on the IDX for the period 2018 – 2020
Databáze: OpenAIRE