Effect of Current Ratio, Debt to Equity Ratio, Total Assets Turnover Ratio, Return on Assets and Institutional Ownership of Financial Distress in the Property & Real Estate Sector Listed on the Indonesia Stock Exchange

Abstract

The objective of the research is to analyze and find out, partially and simultaneously, the influence of Current Ratio, Debt Equity Ratio, Total Asset Turnover Ratio, Return on Asset, and Institutional Ownership on Financial Distress in the Manufacturing companies of Property & Real Estate Sector listed BEI (Indonesia Stock Exchange) from 2010 to 2019. The population is 64 companies and ten of them are used as the samples. The data are gathered by conducting a documentary study and analyzed by using E-views software program with chow test (common vs fixed effect, Hausman test, multiple regression analysis of panel data model, classic assumption test, T-test, F-test and determinant (R2) test. The result of the research shows that part, the Current Ratio does not affect Financial Distress, Debt Equity Ratio has some effect on Financial Distress, the Total Asset Turnover Ratio has some effect on Financial Distress, Return on Assets has the same effect on financial distress, and Institutional Ownership does not affect Financial Distress. Simultaneously, Current Ratio, Debt to Equity Ratio, Total Assets Turnover, Return on Asset dan Institutional Ownership have the same effect on financial distress in manufacturing companies’ property & Real Estate sector listed on the Indonesia Stock Exchange from 2010 to 2019 Keywords: Current Ratio. Debt To Equity Ratio. Total Assets Turnover Ratio. Return On Assets, Institutional Ownership and Financial Distress.