Financial distress analysis of property and real estate companies in Indonesia

Abstract

This study is to determine how does of liquidity, intellectual capital, institutional ownership, managerial ownership and independent commissioner on financial distress. The population used in this study is the property, real estate, and building construction sector companies listed on the Indonesia stock exchange (IDX) and it was conducted for 4 years of observation, namely 2016–2019. The sampling technique used was a purposive sampling method, thus the research sample contained 41 companies with the amount of data observed being 164 data points. The data analysis techniques used were descriptive statistical analysis and the logistic regression analysis method. The results of this study shows all variables simultaneously have a significant effect on financial distress. Partially, intellectual capital has a significant effect on financial distress, while liquidity, institutional ownership, managerial ownership, and independent commissioner have no significant effect on financial distress.