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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 Agus Ari Afandi Agustin Fadjarenie Agustin, Andhika Permana Ahmad Badawi Saluy Ahmad Maftukhin Alfina, Alfina Maharani Alvanny, Laura Vidya Amilin , ANDI AGUNG F, ANDI Anees Janee Ali Anwar Allah Pitchay, Anwar Allah Ardani, Pepy Saudia Ari Afandi, Agus Arif Pujianto Astuti , Novia Dwi Atmaja, Muhammad Zain Satria Augustina Kurniasih Aulia, Nadia Anggi Azizah, Amilia Nur B, Ainu Rofiq Bambang Santoso Marsoem Bin Rahmad, Khozaeni Chintya Dewi, Cindy Daito, Apollo Dioso, Regidor III Doktoralina, Caturida Meiwanto Dwi Agung Susanti, Dwi Agung Susanti Dwi Asih Surjandari Eka Lestari, Waffani Eko Widianarko Kusnadi ENDRI ENDRI Erna Setiany Eva Riantika Ratna Palupi Fadila, Ratih Fitri Indriawati Fitriani Lubis Habibi, Hafid Haris Prasetyo Hadi Santoso Hassan, Datin Dr. Hafizah Che Huda, Akhmad Ilmi, Azzahra Nikmtaul Imam Wahyudi Indrawan, Imam Wahyudi Indriani, Ririn Isnaini Munfarida , Aulia Istianingsih Sastrodiharjo, Istianingsih I’is Intan Putri Hulu Jita, Dey Kristiawan, Indria Kusmiyati, Yeni Kustyarini, Kustyarini limgiani Lin Oktris Lucky Nugroho Luluk, Sri Mappayunki, Ratna Marcella, Rini Mariyam Chairunisa Meryem Afoukane MIP, Evita Muafida, Nabiatul Mudji Rahayu Muhammad Faisal Sofa, Muhammad Muhammad, Zikri Mukhammad Soleh Mulyani, Susi Dwi Munfarida, Aulia Isnaini Murni Hartini, Windadari Muslima Isnanda Putri, Evita Mustika, Ulfa Dyah Mutia Wahyuningsih Narendraputra, Faiz Nita Yuliana Nukhan Wicaksono Pribadi Nur Azizah Nur Laila Rahmawati, Nur Nur Wachidah Yulianti, Nur Wachidah Nurhaliza, Puteri Ayu Nurjayanti, Nanik Nurul Hidayah Nuryanti, Titik Palupi, Hendri Poodar, Sandeep Putri Hulu, I’is Intan Putri Jihandini, Aida Putri, Evita Muslima Isnanda Rahmawati Rahmawati, Rahmawati Rashid, Norhashima Abd Ratu, Iwan Pura Tagu Riantika Ratna Palupi, Eva RINI RINI Rini Rini Riyani, Arum Rohmawati, Indah Ronny Andesto Santoso, Sigid Budi Sembiring, Rinawati Setianto, Rony Sholikhah, Mar'atus Sinda Eria Ayuni Siti Patonah Soeltanto, Taufiq Soliyah Wulandari Sri Mulyani Suci Arsita Sari Suharmadi Suharmadi Suryadharma Sim Sustamy, Raffiky Pinandia Tamliha, Suzanah binti Tatang Ari Gumayanti Taufik Akbar Titik Aryati Tri Rahayuningsih Tri Wulan Sundari Triyana, Kholish Fajri Vebry Resky Aulia Domo Widodo Widodo Widodo Widodo Widyaningsih, Vania Wieta Chairunesia Wirotomo, Heristiawan Aryo WIWIK MUHIDAYATI, WIWIK Yusoff, Yusliza Mohd Zubir Azhar Zuha Rosufila