Abstract
Financial distress occurs before the bankruptcy of a company. Thus the financial distress model needs to be
 developed, because by knowing the company's financial distress from an early age, it is hoped that actions can
 be taken to anticipate conditions that lead to bankruptcy. Financial distress can be measured through financial
 statements by analyzing financial statements. This study aims to determine and analyze the effect of liquidity,
 profitability, financial leverage, and operating cash flow in predicting financial distress conditions for
 manufacturing companies listed on the Indonesia Stock Exchange in 2016-2020. Data from the company's
 official website and completed from the IDX and ICMD websites. There are independent variables, namely
 liquidity, profitability, financial leverage, and operating cash flow, while the dependent variable in this study is
 financial distress. The data analysis method used in this research is logistic regression analysis method which
 aims to determine the role of each independent variable in influencing the dependent variable. The results of
 this study indicate that liquidity has no effect on financial distress, meaning that if the company is able to pay
 its debts well, then it is likely that the company will not experience financial distress. Profitability has no effect
 on financial distress, meaning that the size of the company's profit value has no effect on the company so that
 it avoids financial distress conditions. Financial leverage has a positive effect on financial distress, meaning that
 if the company has higher debt and is not followed by high sales results, it can allow failure to pay debts which
 causes the company to be in financial distress. Cash flow has no effect on financial distress, meaning that if the
 company has a good operating cash flow value, it will not experience financial distress.
Highlights
Financial distress terjadi sebelum kebangkrutan pada suatu perusahaan
This study aims to determine and analyze the effect of liquidity, profitability, financial leverage, and operating cash flow in predicting financial distress conditions for manufacturing companies listed on the Indonesia Stock Exchange in 2016-2020
The results of this study indicate that liquidity has no effect on financial distress, meaning that if the company is able to pay its debts well, then it is likely that the company will not experience financial distress
Summary
Pemberian sinyal yang didefenisikan sebagai tindakan manajemen puncak yang tidak rasional jika dilakukan oleh manajemen yang lebih rendah. Pemberian sinyal merupakan usaha manajemen yang memiliki informasi kebih ketimbang investor tetapi berusaha untuk menyajikannya pada investor guna meningkatkan keputusan investasi. Sehingga dapat diperoleh kabar baik dan kabar buruk mengenai tindakan manajemen terkait dengan kondisi perusahaan dan keputusan investasi. Teori sinyal berguna untuk menggambarkan perilaku ketika dua pihak (individu dan organisasi) memiliki informasi yang berbeda. Hal ini berarti teori sinyal menekankan kepada pentingnya informasi yang dikeluarkan oleh perusahaan. Informasi tersebut dapat berupa laporan keuangan, informasi kebijakan perusahaan maupun informasi lain yang diungkapkan langsung oleh manajemen perusahaan [10]
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