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Journal : Advances In Social Humanities Research

Determinan Financial Distress: A Study on The Property and Real Estate Sector in The Indonesia Stock Exchange Marcella, Rini; Utami, Wiwik
Advances In Social Humanities Research Vol. 2 No. 11 (2024): Advances in Social Humanities Research
Publisher : Sahabat Publikasi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.46799/adv.v2i11.302

Abstract

The property and real estate sector plays a crucial role in the Indonesian economy but faces significant risks of financial distress. This study aims to identify the determinants of financial distress within this sector, focusing on companies listed on the Indonesia Stock Exchange between 2018 and 2022. The research examines the effects of profitability, liquidity, leverage, interest rates, and inflation on financial distress. Using a quantitative approach, this study applies statistical techniques and regression analysis to secondary data from various property and real estate companies. The findings reveal that: (i) profitability has a negative impact on financial distress, indicating that lower profitability increases the likelihood of financial difficulties; (ii) liquidity also shows a negative relationship with financial distress, meaning reduced liquidity elevates financial risk; (iii) leverage negatively influences financial distress, suggesting that higher debt levels exacerbate financial instability; (iv) rising interest rates contribute to financial distress by increasing borrowing costs, thereby straining company resources; and (v) inflation worsens financial distress by eroding purchasing power and dampening property demand. This study provides valuable insights for stakeholders, including investors and policymakers, to enhance their understanding of financial risk management in the property and real estate sector. The novelty of this research lies in its specific focus on a critical period and sector within the Indonesian economic landscape, addressing key areas of concern for financial stability
Co-Authors Achmad Chotib Afandi , Agus Ari Agung Susanti, Dwi Agustin Fadjarenie Ahmad Badawi Saluy Alfina, Alfina Maharani Amilin , ANDI AGUNG F, ANDI Anees Janee Ali Arif Pujianto Astuti , Novia Dwi Atmaja, Muhammad Zain Satria Augustina Kurniasih Aulia, Nadia Anggi Azizah, Amilia Nur Azzahra Nikmtaul Ilmi B, Ainu Rofiq Bambang Santoso Marsoem Daito, Apollo Dioso, Regidor III Doktoralina, Caturida Meiwanto Dwi Agung Susanti, Dwi Agung Susanti Dwi Asih Surjandari Eko Widianarko Kusnadi ENDRI ENDRI Erna Setiany Fadila, Ratih Fitri Indriawati Fitriani Lubis Habibi, Hafid Haris Prasetyo Hadi Santoso Hassan, Datin Dr. Hafizah Che Huda, Akhmad Imam Wahyudi Indrawan, Imam Wahyudi Istianingsih Sastrodiharjo, Istianingsih I’is Intan Putri Hulu Jita, Dey Kristiawan, Indria Kustyarini, Kustyarini limgiani Lin Oktris Lucky Nugroho Luluk, Sri Mappayunki, Ratna Marcella, Rini Mariyam Chairunisa Meryem Afoukane MIP, Evita Mudji Rahayu Muhammad, Zikri Mukhammad Soleh Mulyani, Susi Dwi Mutia Wahyuningsih Narendraputra, Faiz Nita Yuliana Nukhan Wicaksono Pribadi Nur Azizah Nur Wachidah Yulianti, Nur Wachidah Nurhaliza, Puteri Ayu Nurul Hidayah Nuryanti, Titik Palupi, Hendri Pinandia Sustami, Raffiky Poodar, Sandeep Rahmawati, Rahmawati Ratu, Iwan Pura Tagu Rini Rini Riyani, Arum Rohmawati, Indah Ronny Andesto S, Raffiky Pinandia Santoso, Sigid Budi Sembiring, Rinawati Setianto, Rony Sholikhah, Mar'atus Sinda Eria Ayuni Siti Patonah Soeltanto, Taufiq Soliyah Wulandari Suharmadi Suharmadi Suryadharma Sim Tamliha, Suzanah binti Tatang Ari Gumayanti Titik Aryati Tri Rahayuningsih Tri Wulan Sundari Vebry Resky Aulia Domo Widodo Widodo Widodo Widodo Wieta Chairunesia Wirotomo, Heristiawan Aryo WIWIK MUHIDAYATI, WIWIK Yeni Kusmiyati Yusoff, Yusliza Mohd Zubir Azhar Zuha Rosufila