Abstract
This study aims to provide empirical evidence regarding the effect of financial distress and leverage on the flexibility in cash flow classification in nonfinancial companies listed on the Indonesia Stock Exchange in 2017-2018. The flexibility in cash flow classification is where managers are allowed to classify interest paid, interest received, and dividend received into operating, investing, or financing cash flow activities. By using purposive sampling method, obtained research samples of 395 companies. In this study, the flexibility of cash flow classification measured by dummy method of utilizing the cash flow classification flexibility by manager. this reseach create a poxy for financial distress based on Altman's Z-score (Altmant and Hotchkiss, 2006), while leverage measured by debt to total assets ratio. Analysis technique used logistic regression analysis. The results showed that financial distress has no effect on flexibility in cash flow classification. Leverage has a positive and significant effect on flexibility in cash flow classification, which is firm with high leverage tend to take advantage cash flow classification flexibility to infale operating cash flow
Highlights
This study aims to provide empirical evidence regarding the effect of financial distress and leverage on the flexibility in cash flow classification in nonfinancial companies listed on the Indonesia Stock Exchange in 2017-2018
The results showed that financial distress has no effect on flexibility in cash flow classification
Penelitian ini dilakukan untuk melihat apakah financial distress, leverage, ukuran perusahaan, dan profitabilitas mempengaruhi fleksibilitas klasifikasi arus kas
Summary
METODE PENELITIAN Sampel dan Jenis Penelitian Penelitian ini tergolong penelitian kausatif, dengan pendekatan kuantitatif. Sumber dan Teknik Pengumpulan Data Jenis data yang digunakan penelitian ini adalah data dokumenter dan sekunder. Metode pengumpulan data menggunakan teknik dokumentasi dengan melihat laporan keuangan perusahaan sampel. Variabel Penelitian dan Pengukuran Variebel dependen penelitian ini adalah Fleksibilitas klasifikasi arus kas yang diukur dengan skala nominal (dummy). Variabel independen pada penelitian ini adalah financial distress dan leverage. Financial distress diukur menggunakan Altman's z-score dan leverage diukur menggunakan debt to total assets. Dari hasil perhitungan Altman's z-score, dapat ditentukan perusahaan mnegalami tekanan keuangan atau tidak dengan kriteria: >2,90 bebas dari tekanan keuangan, 1,23
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.
