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The Influence of Liquidity, Leverage and Profitability on Financial Distress of Listed Manufacturing Companies in Indonesia

Year: 2018

Type: conference-paper

Abstract: This research aims to empirically examine the influence of (1) liquidity, (2) leverage and (3) profitability on financial distress of manufacturing companies listed in Indonesian Stock Exchange (IDX).The population in this study are all manufacturing companies listed in Indonesian Stock Exchange.The research sample was selected using purposive sampling method resulted with a total of 118 companies.The research used secondary data obtained from ICMD.Logistic regression was used to analyze the data.The research results show that (1) liquidity has a negative and significant influence on financial distress of manufacturing companies, (2) leverage has a negative and significant influence on financial distress of manufacturing companies, and (3) profitability has a negative and significant influence on financial distress of manufacturing companies listed in Indonesian Stock Exchange.

Source: Padang International Conference on Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA)

DOI: 10.2991/piceeba-18.2018.51

Authors: Erni Masdupi, Abel Tasman, Atri Davista

Institution: Universitas Negeri Padang

Language: English

Topic: Financial Distress and Bankruptcy Prediction

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

OpenAlex ID: W2893059792