FINANCIAL PERFORMANCE TO DETERMINE FINANCIAL DISTRESS CONDITIONS
Main
Yustina Indi Savery*
Haninun
Riswan
The aim of this study is to examine the relationship between financial performance and the prediction of financial distress in a mining sector company listed on the Indonesia Stock Exchange from 2018 to 2022. A quantitative research method was employed for this study. The study focused on three independent variables, namely profitability, liquidity, and leverage, which were used to measure financial performance. The dependent variable, financial distress, was measured using the Altman Z-score model. A purposive sampling method was used to select 90 samples for this research, including 18 companies in the mining sector listed on the Indonesia Stock Exchange from 2018 to 2022. The data was analyzed using SPSS 17, with logistic regression as the chosen analysis method. The findings of this study indicate that profitability, as measured by ROA, and liquidity, as measured by CR, have a negative and significant impact on financial distress. Additionally, leverage, as proxied by DAR, has a positive and significant effect on financial distress.
Acaravci, S. K. (2015). The determinants of capital structure: Evidence from the Turkish manufacturing sector. International Journal of Economics and Financial Issues, 5(1), 158–171.
Amna et al. (2021). Pengaruh_Profitabilitas_Likuiditas_Laverage_Terhadap_Financial_Distress. Jurnal Akuntansi Dan Keuangan, 12(2), 88–99.
Assagaf, A. (2017). Subsidy government tax effect and management of financial distress state owned enterprises-case study sector of energy, mines and transportation. International Journal of Economic Research, 14(7).
Balasubramanian, S. A., GS, R., P, S., & Natarajan, T. (2019). Modeling corporate financial distress using financial and non-financial variables: The case of Indian listed companies. International Journal of Law and Management, 61(3/4), 457–484.
Curry, K., & Banjarnahor, E. (2018). Financial distress pada perusahaan sektor properti go public di Indonesia. Prosiding Seminar Nasional Pakar, 207–221.
Delayanti, N., Oktaviani, D., & Lisiantara, G. A. (2022). Pengaruh Profitabilitas, Likuiditas, Aktivitas, Leverage, dan Sales Growth terhadap Financial Distress. Owner: Riset Dan Jurnal Akuntansi, 6(2), 2613–2623. https://doi.org/https://doi.org/10.33395/owner.v6i3.944
Dwiantari, R. A., Gede, L., & Artini, S. (2021). The Effect of Liquidity, Leverage, and Profitability on Financial Distress (Case Study of Property and Real Estate Companies on the IDX 2017-2019). American Journal of Humanities and Social Sciences Research (AJHSSR), 5(1), 367–373.
Erayanti, R. (2019). Pengaruh Likuiditas, Profitabilitas dan leverage terhadap prediksi financial distress. Jurnal Riset Akuntansi & Perpajakan (JRAP), 6(01).
Farooq, U., Jibran Qamar, M. A., & Haque, A. (2018). A three-stage dynamic model of financial distress. Managerial Finance, 44(9), 1101–1116.
Isayas, Y. N. (2021). Financial distress and its determinants: Evidence from insurance companies in Ethiopia. Cogent Business & Management, 8(1), 1951110.
Jihadi, M., Vilantika, E., Hashemi, S. M., Arifin, Z., Bachtiar, Y., & Sholichah, F. (2021). The effect of liquidity, leverage, and profitability on firm value: Empirical evidence from Indonesia. Journal of Asian Finance, Economics and Business, 8(3), 423–431.
Khoja, L., Chipulu, M., & Jayasekera, R. (2019). Analysis of financial distress cross countries: Using macroeconomic, industrial indicators and accounting data. International Review of Financial Analysis, 66, 101379.
Lilyani, A. I., Riduwan, A., & Suryono, B. (2023). The Influence Of Profitability, Liquidity, Leverage, And Dividend Policy On Investor Response: Firm Size As A Moderation. Lead Journal of Economy and Administration, 1(4), 109–120.
Mehmood, A., & De Luca, F. (2023). Financial distress prediction in private firms: developing a model for troubled debt restructuring. Journal of Applied Accounting Research.
Mehrabanpour, M., Faraji, O., Sajadpour, R., & Alipour, M. (2020). Financial statement comparability and cash holdings: the mediating role of disclosure quality and financing constraints. Journal of Financial Reporting and Accounting, 18(3), 615–637.
Noor, T., Sinaga, B., & Maulana, T. B. N. A. (2015). Testing on pecking order theory and analysis of company’s characteristic effects on emitten’s capital structure. Indonesian Journal of Business and Entrepreneurship (IJBE), 1(2), 81.
Nurdiawansyah, N., Dharmawan, Y. Y., Haninun, H., Warganegara, T. L., & Santoso, S. (2021). Determinasi financial distress pada perusahaan property dan real estate. Jurnal Akuntansi Dan Keuangan, 12(2), 100–111.
Permata, A. G. (2023). Pengaruh Kinerja Keuangan Terhadap Financial Distress (Studi pada Perusahaan Asuransi yang Terdaftar di BEI Periode 2017-2021). Jurnal EMT KITA, 7(3), 711–720.
Putra. (2023). Harga Ambruk 60%, Saham Emiten Batu Bara Sudah di Senja Kala? Research@cnbcindonesia.Com. https://www.cnbcindonesia.com/market/20230519134823-17-438760/harga-ambruk-60-saham-emiten-batu-bara-sudah-di-senja-kala.
Ramadhan, Z., & Munawaroh, A. (2022). Determinan Harga Saham Perusahaan Sub Sektor Pertambangan Batu Bara. Jurnal Muhammadiyah Manajemen Bisnis, 3(1), 1–10.
Sariroh, H. (2021). Pengaruh Likuiditas, Leverage, Profitabilitas, dan Ukuran Perusahaan terhadap Financial Distress di Sektor Trade, Service, and Invesment. Jurnal Ilmu Manajemen, 9(3), 1–14.
Sehgal, S., Mishra, R. K., Deisting, F., & Vashisht, R. (2021). On the determinants and prediction of corporate financial distress in India. Managerial Finance, 47(10), 1428–1447.
Setiyowati, R., & Tjahjono, R. S. (2022). Likuiditas, Leverage, dan Pertumbuhan Entitas terhadap Nilai Perusahaan. E-Jurnal Akuntansi TSM, 2(4), 503–514.
Succurro, M., Arcuri, G., & Costanzo, G. D. (2019). A combined approach based on robust PCA to improve bankruptcy forecasting. Review of Accounting and Finance, 18(2), 296–320.
Suhadak, S., Kurniaty, K., Handayani, S. R., & Rahayu, S. M. (2018). Stock return and financial performance as moderation variable in influence of good corporate governance towards corporate value. Asian Journal of Accounting Research, 4(1), 18–34.
Susilowati, P. I. M., & Fadlillah, M. R. (2019). Faktor- Faktor yang Mempengaruhi Financial Distress Pada Perusahaan Manufaktur di Indonesia. Jurnal Akuntansi Dan Sistem Informasi, 4(1), 19–28.
Susilowati, P. I. M., & Fadlillah, M. R. (2019). Faktor- Faktor yang Mempengaruhi Financial Distress Pada Perusahaan Manufaktur di Indonesia. Jurnal Akuntansi Dan Sistem Informasi, 4(1), 19–28.
Tripathy, A., & Uzma, S. H. (2020). Factors influencing liquidity position of Indian manufacturing companies. Journal of Accounting in Emerging Economies, 10(2), 243–260.
Wijaya, E., Asyik, N. F., & Fadrul, F. (2020). Capital Structure and Profitability of LQ45 Index in Indonesia: Pecking Order Theory Approach. Journal of Applied Business and Technology, 1(2), 69–75.
Wu, D., Ma, X., & Olson, D. L. (2022). Financial distress prediction using integrated Z-score and multilayer perceptron neural networks. Decision Support Systems, 159, 113814.
