Occurrence Of Financial Distress Research Articles

Pengaruh Risk Profile, Good Corporate Governance, Earnings, dan Capital Terhadap Financial Distress pada Unit Usaha Syariah Periode 2018-2022

This research aims to analyze the influence of RGEC (Risk Profile, Good Corporate Governance, Earning and Capital) on the financial distress of Sharia Business Units in Indonesia for the 2018-2022 period. The dependent variable in this research is financial distress and the independent variable is the ratios in the RGEC health assessment including NPF, FDR, GCG, BOPO, ROA, NIM, and CAR. The results of this research show that NPF, FDR, GCG, BOPO, ROA, NIM, and CAR. has a significant effect on the occurrence of financial distress in Indonesian Sharia Business Units for the 2018-2022 period.

Climate risk exposure and corporate financial distress

ABSTRACT This study investigates the relationship between firm-level climate risk and the occurrence of financial distress within a sample of Chinese listed companies spanning from 2007 to 2022. We find that climate risk significantly accelerates financial distress. Additionally, the empirical evidence suggests that climate risk exacerbates financial distress primarily through the mechanisms of heightened financial constraints and increased risk-taking.

Analysis of Factors that Influence Financial Distress Conditions using the Debt Service Coverage Ratio Approach (Case Study of the Food and Beverage Industry Listed on the Indonesian Stock Exchange Before and During Covid-19)

Covid-19 condition is known to have had a major impact on the financial performance of issuers. The food and beverage industry is one of the mainstay manufacturing sectors in making a major contribution to national economic growth. The data used in this study was pre-covid data, year 2018 until 2021 during covid. The method used in this study is the Debt Service Coverage Ratio Pranowo et al. (2010). The analysis used in this research is descriptive analysis and panel data regression. The results of this research were that 26 company experienced a decrease in distress, 26 company experienced an company in Profitability, 26 company experienced an increase in Liquidity, 26 company experienced an increase in Efficiency, 26 company experienced a decrease in Leverage, 26 company experienced a decrease in Solvency. Factors that show a significant influence on financial distress in the period before Covid-19 are Efficiency, Liquidity. The factor of increasing efficiency also influences the reduction in the occurrence of financial distress. The factor of increasing liabilities also influences the increase in the occurrence of financial distress. Factors that show a significant influence on financial distress during Covid-19 are Solvability and Efficiency. This shows that during Covid-19, the increase in the value of debt will influence the tendency to increase the occurrence of financial distress. The decline in the value of income during Covid-19 also influenced the increase in financial distress. Advice to investors to be more selective in choosing food and beverage issuers as a place to invest during Covid-19. One important consideration is that investors focus more on factors that have a significant influence on Liquidity, Efficiency, Solvency.

Analysis of factors that cause financial distress in Islamic commercial banks

This research aims to analyze the factors that cause financial distress in Islamic commercial banks in Indonesia so that Islamic banking companies avoid financial difficulties and reduce the possibility of bankruptcy. The population used in this research were 13 Islamic commercial banks registered with the Otoritas Jasa Keuangan (OJK), and sampling used a purposive sampling technique where samples were taken with certain conditions until 9 Islamic commercial banks were selected with a research period of eight years (2015-2022). Data analysis using multiple linear regression and the results obtained showed that the leverage ratio has a negative and significant effect on the occurrence of financial distress, where leverage measurement uses Debt to Equity Ratio (DER) and financial distress measurement uses Z-Score. At the same time, the liquidity ratio has a positive but insignificant effect on financial distress, where liquidity is measured using the Current Ratio (CR).

The Effect of Financial Ratios on Financial Distress Conditions is Moderated by Profitability Ratios

This study aims to examine the effect of financial ratios moderated by profitability ratios on the financial distress of transportation and logistics sector companies listed on the IDX for 4 consecutive years in the 2018-2021 period. The independent variables are proxied by CR (liquidity), DAR (leverage), SG (growth), and the addition of TATO (activity). In addition, ROA is a proxy for the profitability variable which is the moderating variable. The Z-Score (Altman) is a proxy for financial distress as the dependent variable. This study selected companies in the transportation and logistics sector for the 2018-2021 period as a population with a sample size of 18 companies in the transportation and logistics sector that met the criteria. Logistic regression analysis was used as an analytical technique in this study. The results of his research inform that CR, DAR, and TATO have a significant influence on the occurrence of financial distress. Meanwhile, SG did not significantly affects the occurrence of financial distress. In addition, ROA can moderate the effect of SG and TATO on the occurrence of financial distress. However, ROA is unable to moderate the effect of CR and DAR on the occurrence of financial distress.

Pengaruh Sales Growth,Laba Bersih,Likuiditas Dan Leverage Terhadap Finansial Distress (Studi Perusahaan Sektor Manufaktur Yang Terdaftar Di BEI Tahun 2018 – 2021 )

This study intends to identify and analyze the impact of Sales Growth, Net Profit, Liquidity and Leverage on Financial Distress (a study of manufacturing sector companies on the IDX for the 2018-2021 period). The research approach uses a quantitative approach. The total population in the study was 193 manufacturing companies found on the IDX for the 2018-2021 period. The sample collection method was purposive sampling, companies that met the criteria for being sampled in this study totaled 14 companies. The results showed Sales growth, Net profit, Liquidity, and Leverage has a simultaneous and significant effect on Financial Distress (studies on manufacturing sector companies found on the IDX for the 2018-2021 period). The simultaneous test results state that Sales Growth partially has a significant effect on Financial Distress (studies on manufacturing sector companies listed on the IDX in 2018-2021). Simultaneous test results state that net profit partially has a significant effect on the occurrence of Financial Distress (studies in manufacturing sector companies listed on the IDX in 2018-2021). The simultaneous test results state that Liquidity partially has no significant effect on the occurrence of Financial Distress (studies of manufacturing sector companies listed on the IDX in 2018-2021). The simultaneous test results state that partial leverage has no significant effect on the occurrence of financial distress (a study of manufacturing sector companies listed on the IDX in 2018-2021.
 
 Keywords: Sales Growth, Net Profit, Liquidity, Leverage, Financial Distress

ADA APA DENGAN FINANCIAL DISTRESS?

The purpose of this study is to analyze what is behind the occurrence of financial distress in companies and the factors that affect them. This study uses the metasynthesis method by analyzing the results of previous qualitative research related to the topic of financial distress. Based on a meta-synthesis of 12 research articles, several potential causes of financial distress in companies were identified, including: (1) poor corporate governance; (2) managerial implications such as poor capital management, liquidity and profitability; (3) an unbalanced proportion of the board of commissioners; (4) low operating capacity; (5) high levels of liquidity; (6) incompetence manage debt; and (7) certain types of companies that are vulnerable to financial problems. In addition, the financial distress prediction model can be used as an early warning of such conditions for company management. In conclusion, the company's management must regularly and carefully monitor the financial condition of the company, maintain liquidity and profitability, and apply good corporate governance in order to avoid the risk of financial distress that can lead to bankruptcy.

The Impact of Sales Growth on Financial Distress in Food and Beverage on the Indonesian Stock Exchange during the 2019-2020 Covid-19

Purpose: The Covid-19 pandemic has led to corporate financial decline caused by reduced profits and sales. Additionally, the decline in corporate finances has also been attributed to a decrease in sales within companies. The purpose of this research is to investigate the impact of sales growth on the occurrence of financial distress in food and beverage companies listed on the Indonesian Stock Exchange.
 Design/methodology/approach: The variable used in this study is sales growth, which is used to measure a company's ability to maintain its economic position in a growing economy, as well as in the industry or product market in which it operates, as a means of survival in the face of intense market competition.
 Findings: This study utilises a qualitative approach, employing descriptive analysis techniques through a literature review (library research). The findings of this research indicate that sales growth has a significant impact on financial distress in food and beverage companies listed on the Indonesian Stock Exchange during the 2019-2020 periods.
 Paper type: a Research Paper

Pengaruh Likuiditas, Leverage, Profitabilitas, Dan Sales Growth Terhadap Financial Distress

The purpose of this study is to examine the effect of liquidity, leverage, profitability and sales growth towards financial distress on manufacturing companies listed on the Indonesia Stock Exchange in 2017-2019. This study using 36 companies that have been selected through a purposive sampling method. Data processing techniques using multiple regression analysis what helped by Eviews (Econometrical Views) program version 10 and Microsoft Excel 2016. The results show that leverage and profitability have positive significant effect on financial distress, while liquidity and sales growth has no significant effect on financial distress. The implication of this research is the need of policy to buy some assets in order to maintain the level of debt of the company, so it will minimizing the occurrence of financial distress.

Pengaruh Liquidity, Leverage, Profitability (LOSS), Dan Institutional Ownership Terhadap Financial Distress

This research aims to obtain empirical evidence about the effect of liquidity, leverage, profitability (loss), and institutional ownership on financial distress in manufacturing companies listed on the Indonesia Stock Exchange during 2017-2019. Sample was selected using purposive sampling method and the valid data was 20 companies. Data processing techniques using multiple regression analysis what helped by Eviews (Econometrical Views) application version 11 and Microsoft Excel 2013. The results of this study indicate that liquidity and profitability (loss) have a positive and significant influence on financial distress. The implication of this research is the need to maintain the level of liquidity and long-term debt of the company, followed by increasing the profitability level, so that it will minimize the occurrence of financial distress in the company.

What Best Explains Reporting Delays? A SME Population Level Study of Different Factors

The objective of this paper is to find out which factors best explain why SMEs delay their annual reports (DAR). Relying on various theoretical streams, we use three types of variables to explain DAR: past DAR behaviour of managers, corporate governance characteristics and occurrence of financial distress. The study is based on the whole population data from Estonia, with a total 59,294 unique firms. Two types of DAR, i.e., short- and long-term delays, are used as dependent variables in the logistic regression analysis. The paper indicates that both types of today’s DAR are best explained by the previous DAR behaviour of managers, especially in the nearest past. Financial distress has a lower, but still acceptable explanatory power, while it remains weak for the corporate governance characteristics. Firm size and age have an impact on the results. As the paper indicates the prominence of recurrent violation behaviour in explaining DAR, the legal framework and its implementation could be adjusted to take account of this fact. The linkage of DAR and financial distress suggests the inclusion of the former into credit scoring models.

UKURAN PERUSAHAAN SEBAGAI PEMODERASI FAKTOR-FAKTOR YANG MEMPENGARUHI FINANCIAL DISTRESS

This Purpose of this study aims to examine the effect of Profitability, Leverage and Liquidity on financial distress with firm size as Moderating in Transportation sub sector companies listed on the Indonesia Stock Exchange in 2015-2019. The population of this study includes all transportation sub-sector companies that have negative profits for 2 consecutive years between 2015-2019. The results of this study indicate that: (1) Profitability has a negative effect on the occurrence of financial distress. (2) Leverage has no effect on the occurrence of financial distress. (3) Liquidity has a negative effect on the occurrence of financial distress. (4) Profitability which is moderated through company size influences and strengthens financial distress. (5) Leverage moderated through company size does not affect financial distress. (6) Liquidity moderated through company size influences and strengthens financial distress

ARUS KAS OPERASI, LEVERAGE, SALES GROWTH TERHADAP FINANCIAL DISTRESS

The purpose of this study is to determine how the influence of operating cash flow, leverage and sales growth ratios on the occurrence of financial distress. The research method used in this study is a quantitative method. While the data collection techniques used in this study are purposive sampling. The population in this study is the textile and garment subsector companies listed on the Indonesia Stock Exchange in 2015-2018 as many as 14 companies with observational data of 56 samples. This study uses panel data regression analysis techniques. Simultaneous variable operating cash flow, leverage, and sales growth have a significant effect on financial distress. And then, leverage has a significant effect on financial distress. While the operating cash flow and sales growth partially did not have significant effect on financial distress.

PENGARUH OPERATING CAPACITY, SALES GROWTH DAN ARUS KAS OPERASI TERHADAP FINANCIAL DISTRESS

This study aims to determine how the influence of operating capacity, sales growth and operating cash flows on financial distress. The population in this study israll agricultural sector companies listed on the Indonesia Stock Exchange (IDX) in 2013-2017. The sampling technique in this study used purposive sampling which produced 8 samples in a period of 5 years, namely as many as 40 units of data samples. The analytical method used is logistic �regression analysis which is processed. using SPSS Version 25. Based on the results of this study, it was found that simultaneous operating capacity, sales growth and operating cash flows influence the occurrence of financial distress. Then partially, operating capacity and sales growth have no effect on the occurrence of financial distress, while operating cash flows have a positive and significant effect on the occurrence of financial distress.�Keyword : Financial Distress, Operating capacity, Sales growth, Operation cash flow.

UKURAN PERUSAHAAN DAN GOOD CORPORATE GOVERNANCE TERHADAP TERJADINYA KONDISI FINANCIAL DISTRESS

This study aims to determine how the influence of firm size and good corporate governance on the occurrence of financial distress in various industrial sector companies listed on the Indonesia Stock Exchange during 2012-2017. The research method used is descriptive and verifiative. The sample used were 5 sector companies which were done by purposive sampling. Data analysis method used was panel data regression analysis using Eviews 9. The results showed that simultaneously the size of the company and good corporate governance have effect on the occurrence of financial distress conditions about 69.2%. Partially the size of the company has an effect of 39.7%, institutional ownership has an effect 22.4% on the occurrence of financial distress, while managerial ownership has an effect of 7.1% but not significant.

Financial distress prediction: Comparisons of logit models using receiver operating characteristic (ROC) curve analysis

The prediction of future financial condition of corporations has attracted the attention of financial researchers, and finding the alerting indexes of occurrence of financial distress has turned to be one of the most attractive and significant fields of financial and economic researches. Studying the history of researches shows that many of the researchers have focused on the financial ratios of the corporations to predict the financial distress. This article studies the logit models for one and two years before the occurrence of financial distress (T-1 and T-2) by making use of financial ratios and also by utilizing the analysis of receiver operating characteristic (ROC) curve. The analysis of ROC curve, among the models employed to compare the effectiveness of different statistical models, is often used in the fields of psychology and bio-medics in order to summarize the discriminatory of a diagnostic test and also to compare the performance of different models for binary outcomes. Regarding the accuracy of classification and prediction, the results of this research indicate that T-1 logit model is better than T-2 logit model. However, by considering the measurements done by ROC curve, it could be claimed that T-2 logit model operates more efficiently than T-1 logit model in the classification of distressed corporations. Key words: Financial distress prediction, logit, receiver operating characteristic curve analysis, area under ROC curve (AUC).