The Effect of Leverage, Liquidity, and Firm Size on Financial Distress in Manufacturing Companies Listed on the IDX in 2021-2023
Year: 2025
Type: article
Abstract: This study aims to determine the effect of liquidity ratio, leverage, and Firm Size on the occurrence of financial distress in manufacturing companies listed on the IDX in the food and beverage sector in 2021-2023. The population of this study were manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2021-2023. Sampling using purposive sampling technique so that 14 companies were obtained with 3 years of analysis units. The independent variables of this study are liquidity, leverage, Firm Size and the dependent variable is financial distress. The data collection method uses secondary data through annual financial reports from www.idx.co.id. The analysis technique in this study uses descriptive analysis and logistic regression because the dependent variable in this study is a dichotomous variable. The results of the study found that there was no influence of liquidity as measured by the current ratio which had a negative effect on the occurrence of financial distress, there was a significant positive influence of leverage as measured by DER on the occurrence of financial distress, there was no influence of Firm Size as measured by Log total assets on the occurrence of financial distress.
Authors: I Gede Adiputra,, Nur Ainun Bangun,, Padmapraba Tanibnu,, Juan Felix,
Institution: Tarumanagara University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6949792854
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