Work

Determinant of Financial Distress: the Case of Pulp & Paper Companies Registered in Indonesia Stock Exchange

Year: 2020

Type: article

Abstract: The pulp and paper industry contributes to the Indonesian economy, especially to the non-oil and gas processing industry.Empirical research shows that pulp and paper companies listed on the Indonesia Stock Exchange (IDX) indicated financial distress.This study aims to find the effect of liquidity, leverage, profitability, and efficiency on pulp & paper companies' financial distress listed on the IDX.Using the Altman Z-score as a measure of financial distress, it was found that profitability, efficiency, and liquidity had a significant adverse effect on financial distress.In contrast, leverage had a significant positive effect on financial distress.Profitability has the greatest influence on financial distress, so it needs the primary intention of management.

Source: Jurnal Manajemen dan Agribisnis

DOI: 10.17358/jma.17.3.254

Authors: Augustina Kurniasih, Heliantono Heliantono, Agus Herta Sumarto, Rianti Setyawasih, Isti Pujihastuti

Institutions: Mercu Buana University, Universitas Islam 45 Bekasi

Language: English

Topic: Financial Distress and Bankruptcy Prediction

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $52