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Journal : Adpebi Science Series

The Influence of Capital Structure, Liquidity, Solvency and Firm Growth on the Company’s Financial Distress That is Mediated by Profitability (A Study on 12 Indonesia General Insurance Companies Listed on the Indonesian Stock Exchange 2015-2020) Rismala, Lina Indra; Holiawati, Holiawati; Sunardi, Nardi
Adpebi Science Series 2022: 1st AICMEST 2022
Publisher : ADPEBI

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Abstract

This research aims to analyze the influence of capital structure, liquidity, solvency and firm growth on the company’s financial distress that is mediated by profitability in 12 (twelve) general insurance companies listed in the Indonesia Stock Exchange 2015-2020. It applies an associative quantitative research method using secondary data of the published Annual Report of the Indonesian general insurance companies during the above mentioned period, which therefore are determined as research samples and are made by the purposive sampling method. The panel data regression analysis was carried out by applying the EViews v9.0 software supported by Microsoft Excel usage. The data analysis uses the estimation method of multiple linear regression models with descriptive analysis. Classical assumption test consists of normality, autocorrelation, multi-collinearity and heteroscedasticity. Thereafter it is followed by hypothesis testing (t test, F test), detection of mediation effect and path analysis through the Sobel test. The results of this study provide information that all relevant companies as mentioned are all having the high probability of risking financial distress. Capital structure and solvency have immediate affect on profitability, whereas liquidity and firm growth does not, simultaneously the combination of all does have. In regard to financial distress, then capital structure and profitability does have affect, whereas liquidity, solvency and firm growth does not, but again the combination of all will have affect. Profitability mediates the capital structure that in turn influences financial distress, but this does not necessarily mediate liquidity, solvency and firm growth. Profitability however does affect on financial distress
Co-Authors Abdul Latif Adhania, Safira Afridayani, Afridayani Alfi Fadhilah, Alfi Andini, Andini Anjelia, Viona Antonius Antonius Argunanto, Argunanto Arifin, Deni Arimani, Corie Ariyanto, Dedi Augustin, Lestari Awa, Anastasia Azizah, Suli Nur Baity, Namira Nur Bastiansyah, Dodi Cahyani Putri, Wulandari Cahyani, Yenni Dwi Saputra, Aditya Rizkia Eka Sari, Eka Fadilah, Mohamad Arif Fajar, Nanda Kurnia Fatahillah, Rosadi Fathimah, Siti Nurul Friyansyah, Aldy Gunawan, Ester Hanna Hakim, Sultan Maulana Hamsinah Hamsinah, Hamsinah Hamzah, M. Imron Harijanto, Tabita Novikurniasari Haussain Irsyad, Achmad Dias Hirmaleny, Yenny Indra Lesmana Islamaya, Dina Jaenudi, Jaenudi Jati, Waluyo Jhosefine, Octalivia Kherani, Evi Khotimah, Maryatus Kusnul Kusumaningsih, Ani Lahagu, Yefita Lindawati Lindawati Luvito, Andi Mahfudyanto, Akhirul Malik, Muhamad Abdul Marheni Marheni Mariati Mariati Marjohan, Masno Maulana, Ingga Muliyani Muliyani Nasution, Nurjamilah Nduru, Yuni Nofryanti, Nofryanti Nopagia, Nopagia Nur Afni Nurizka Dewi, Sekar Gusti Nurlina Nurlina Oktavianna, Rakhmawati Pertiwi, Alusia Vita Rinda Prasetyo, Wahyu Heri Pratama, Tiara Pratiti, Dian Pratiwi, Adhitya Putri Priambada, Arga Rachmawaty Rachmawaty, Rachmawaty Rahadian, Muhammad Fauzan Rismala, Lina Indra Rizanti , Puti Zhafirah Rizqillah, Fahmi Rohimah Rohimah Rosini, Iin Ruhiyat, Enang Ruhiyat, Endang Sanaya, Feby Rani Sandjaja, Agustina Setyo Supratno Sigit, Yoga Arief Mart Sinaga, Melisa Sri Agustina, Sri Sri Hartutik Sugiyanto - Suhaeri, Aldo Aulia Sukmana, Eka Sunardi, Nardi Suprayogi Suprayogi Suripto Suripto Susilawati, Susilawati Syatoto, Iman Tatariyanto, Firman Valentine, Erick Wardana Wardana Waryanto, Hendro Widiyati, Dian Widya Ningsih Wijaya, Safta Wijaya, Uki Budi Wijaya, Uki Budi Wijaya Wulan, Defina Andany Wulandari, Estha Yati, Heni Zahra, Indri Eliza Zia, Kahaliza