Abstract
The purpose of this study is to determine how the influence of operating cash flow, leverage and sales growth ratios on the occurrence of financial distress. The research method used in this study is a quantitative method. While the data collection techniques used in this study are purposive sampling. The population in this study is the textile and garment subsector companies listed on the Indonesia Stock Exchange in 2015-2018 as many as 14 companies with observational data of 56 samples. This study uses panel data regression analysis techniques. Simultaneous variable operating cash flow, leverage, and sales growth have a significant effect on financial distress. And then, leverage has a significant effect on financial distress. While the operating cash flow and sales growth partially did not have significant effect on financial distress.
Highlights
Setiap perusahaan memiliki tujuan yaitu memperoleh laba yang optimal (Widhiari dan Merkusiwati, 2015)
The research method used in this study is a quantitative method
While the data collection techniques used in this study are purposive sampling
Summary
Setiap perusahaan memiliki tujuan yaitu memperoleh laba yang optimal (Widhiari dan Merkusiwati, 2015). Apabila perusahaan tidak dapat bersaing dan mempertahankan perusahaannya maka perusahaan tersebut dapat memperbesar kemungkinan untuk mengalami kondisi kesulitan keuangan (financial distress) (Wibowo and Musdholifah, 2017). Hal tersebut didukung dengan pernyataan (Putri and Aminah, 2019) yang menyatakan financial distress merupakan kondisi dimana perusahaan mengalami kesulitan keuangan berupa penurunan perolehan laba, ketidakmampuan dalam melunasi hutang serta kewajiban yang disajikan dalam laporan keuangan dengan membandingkan keuangan periode sebelumnya. Proksi yang digunakan untuk mengukur financial distress pada penelitian ini yaitu metode altman z-score. Klasifikasi perusahaan yang sehat dan bangkrut didasarkan pada nilai Z-Score model Altman Modifikasi, yaitu: jika nilai Z
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
