Abstract

A financial distress decline in financial health a bussiness had before bankruptcy, so it is important for companies to analyze financial distress as a form of prevention from the start. The investigation’s goal was to examine financial distress using financial ratios that were tempered by firm size. The sample for this analysis consists of 41 firms operating in the restaurant, hotel, and tourist industries that are listed on the Stock Exchange of Indonesia between 2018 - 2021. These studies used purposive sampling techniques to gather samples from 23 different businesses. The data testing procedure employs Moderated Regression Analysis (MRA) in SPSS Version 26. Profitability and leverage were shown to be major factors in the probability of financial trouble. There is little correlation between liquidity and the likelihood of economic hardship. Profitability and leverage can exacerbate financial difficulty, although a company's scale can mitigate this. However, the impact of liquidity on financial hardship can't be dampened by a company's size.

Full Text
Paper version not known

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 call

Disclaimer: 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.