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Journal : International Journal of Artificial Intelligence Research

DETERMINANT OF FINANCIAL DISTRESS IN MANUFACTURING COMPANIES Hermiyetti, Hermiyetti -; Dharmawan, Donny; Mulatsih, Listiana Sri; Alfiana, Alfiana; Anantadjaya, Samuel PD
International Journal of Artificial Intelligence Research Vol 8, No 1.1 (2024)
Publisher : STMIK Dharma Wacana

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.29099/ijair.v8i1.1.1304

Abstract

Financial distress is a picture of a continuous decline in a company's financial performance that needs to be predicted and minimized. The occurrence of financial distress begins with a decline in the company's financial condition which begins with the company's inability to meet its short-term obligations. The purpose of this study is to determine and evaluate the effect of Return on Assets (ROA), company size and also Debt to Equity Ratio (DER) on financial distress. Regression analysis and quantitative methods are used in the research process. Manufacturing companies that consistently release their financial reports during 2019-2022 and are listed on the Indonesia Stock Exchange are examples. The sampling method used in this study was purposive sampling and succeeded in obtaining 40 samples from 10 companies. Data were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The results of this study indicate that ROA has a significant effect on financial distress. Meanwhile, company size and DER do not affect financial distress in manufacturing companies in the 2019-2022 period. The implications of the results of this study for manufacturing company management can be an indicator of corrective actions before the company experiences financial distress or has the potential to go bankrupt.
Investigation of Determinants of Financial Distress in Manufacturing Companies Mulatsih, Listiana Sri; Dharmawan, Donny; Tumiwa, Ramon Arthur Ferry; Judijanto, Loso; Alfiana, Alfiana
International Journal of Artificial Intelligence Research Vol 8, No 1.1 (2024)
Publisher : STMIK Dharma Wacana

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.29099/ijair.v8i1.1.1323

Abstract

Financial distress refers to a continuous decline in a company's financial performance, necessitating prediction and mitigation. It typically begins with the company’s inability to meet its short-term obligations, signaling a deterioration in financial condition. This study aims to examine the effects of Return on Assets (ROA), Current Ratio (CR), and Debt to Equity Ratio (DER) on financial distress, with company size serving as a moderating variable. The research employs regression analysis and quantitative methods, focusing on manufacturing firms listed on the Indonesia Stock Exchange that consistently published financial reports from 2020 to 2023. Using purposive sampling, the study selected 40 samples from 10 companies, with data analyzed through Partial Least Squares-Structural Equation Modeling (PLS-SEM). The findings reveal that ROA significantly impacts financial distress, while CR and DER have no such effect during the observed period. Furthermore, company size moderates the relationship between ROA and CR with financial distress but does not moderate the influence of DER on financial distress. These results provide managerial implications, serving as indicators for corrective actions to prevent financial distress or potential bankruptcy in manufacturing companies
Co-Authors - Afrizal Achmad Fathoni, Achmad Achmad Yusuf Budianto Afifah, Dian Annisah Agustien, Salsha Dwi Agustina, Tria Raisya Akbar, Djalalludin Akhmad Farid Akhyar, Chairil Al-Amin, Al-Amin Aldy Febryawan Alfarizi, Muhammad Alfin Aloysius Ray Julian Kusdiantoro Amalia, Rahma Khairunnisa Amalia, Sinta Ambiya, Muhammad Shofan Amelia , Yesi Amelia, Sinta Amelia, Yesi Amin, Al- Amri, Andi Anantadjaya, Samuel PD Anbiya, Muhammad Shoffan Andiena Nindya Putri Anggraeni, Nuri Triani Anggraeni, Sintia Aprih Santoso Ardenny, Ardenny Ardiani Ika Sulistyawati Ari Purwanti Aris Kurniawan Arrachman, Hajar Chair Asep Rizal, Asep Rizal Astri Astri, Astri Astutik, Wahyuni Sri Asy-syifa, Ghina Aulia Aulia, Ayesa Sofwa Awaludin, Dipa Teruna Azahra, Sarah Mutia Azis, Fajriani Azizah, Nabila Zulfa Azizi, Muhammad Bakri, Asri Ady BillY Dewantara Cakranegara, Pandu Adi Chatarina Umbul Wahyuni Choirul Anam AM Diponegoro Cicik Wijayanti, Tri Dandy, Dava Indira Dede Hertina Dewi, A Ratna Sari Dewi, Nira Destiani Dhafin Al-Rasyid, Dhafin Al-Rasyid Dharmayanthi Pri Handini Dharmayanti Pri Handini Dhea Landy Venida Zulfa Dian Widyantini Dimas Saifurrohman Donny Dharmawan Durya, Ngurah Pandji Mertha Agung Dwi Agustien, Salsha edy susanto Eka, Andi Primafira Bumandava Elista, Amanda Emma Budi Sulistiarini Fadillah, Muhammad Rizki Fadzillah, Kylla Almira Rahma Fajar Fajar Farah Juniati Meutianingrum Faturrahman, Muhammad Hikam Fauzan, Muhammad Irfan Febrianti, Nisa Ferdian, Adam Devan Fikriyyah, Syahla Nur Fitriningsih Amalo Gatot Soebiyakto Gatot Soebiyakto Gautama K, M Ramadhika Ghassani, Amira Muthi Gunarianto Gunarianto Gustian, Dede Hakim, Mohamad Zulman Hamdah, Hesti Hisani Latifah Hamida, Ika Fitria Nur Hamzah, A. Hadian Pratama Hanifah, Luluk Hanum, Filia Hardian, Salman Hariandy Hasbi Harsono, Iwan` Hasbi, Moh Ramdani Hayandani, Mutiara Helvina, Annisa Hendayani, Nenden Hendrawan, Henky Heri setiawan Hermiyetti, Hermiyetti - Humaira, Maliha Rizka Husain, Muhammad Saddam Ihza Husen, Gayatri Nahdiyah Irdawati Irdawati Irfan Yulyansah Irwan Moridu Irwanda, Chika Putri Istigfari, Nafsa Qolbina Istighfari, Nafsa Qolbina Jemi Pabisangan Tahirs Jenny Nancy Kaligis Jiteng Andreas Judijanto, Loso Judijonto, Loso Junjunan, Almaira Sarah Kamil, Afrian Insan Kamil, Indriyati Kartika, Erawati Kartini, Tini Kartiwa, Mohammad Ramadhika Gautama Kemalasari, Andi Anggi Klemens Mere Klemens Mere Kodariah, Siti Koerniawati, Dwi Kristiana, Ida Kurniati Karim Kusuma, Ema Laendatu Paembonan Lailia, Wahidah Nazmi Lajai, Sri Yulandasari Lilis Dewi Ndaru Mulyo Arum Nirwana LISTIANA SRI MULATSIH Loso Judijanto Lumentah, Natalia Reyne Maharani, Pina Aulia Mahmuddin, Anggi Mahmudin, Anggi Mandam, Sri Yulandasari Lajai Mantoro, Ari Assrishan Sosh Maria Desika Bulu Masan Martalia Arya Nurfadila Mas'ud, Muchlis H Masdar, Fiqi Ardi Abdurahman Masdiana Masdiana Maulana, Asep Rizal Meijaya, Panji Setia Mellien Pakerti Winengku Meylani, Nilam Mizan, Haerul Mubarok, Muhamad Luthfi Mubarrok, Muhammad Luthfi Muchlis H Mas'ud Muchlis H. Mas'ud Muchlis Mas’ud Muhamad Stiadi Muhammad Zaki Muklis Muklis Mulastih, Listiana Sri Muliza Muliza Muzaffirah, Adzirah Naim, Sidrotun Nasharuddin Mas Nasharuddin Mas Nasharudin, Nasharudin Nawangwulan, Irma M Nelly Astuti Ningsih , Titiek Surya Novianti, Anggun Fitria Nugraha , Nayla Rubayyina Nugraha, Nayla Rubayyina Nugroho, Anton Priyo NUR FADHILAH, ANIS Nur Fikriyyah, Syahla Nur Laily Safitri Nur, Muh. Nuraeni, Fadila Siti Nuraisyiah, Nuraisyiah Nurdjanah Hamid Nurhakim , Reihan Ahmad Nurhakim, Reihan Ahmad Nurhandayani, Dini Nurhasanah Nurhasanah Nurida Finahari Nurlia Nurlia Nurliawan, Anggy Elfa Nurnaningsih Nurnaningsih Nurohimah, Susi Nurriqli, Arifia Nur’aini , Intan Nur’aini, Intan Nusair, Ahmad Ershaid Oki Akbar Mahendra Oktaviana , Nurul Laily Oktaviana, Nurul Laily Orie Rahma, Erythina PA Andiena Nindya Putri Padil, Wildan Fathil Pamungkas, Eko Wiji Perwito, Perwito Piartrini, Putu Saroyini Pratiwi, Lanina Pratiwi, Meilanie Tri Priatna , Elky Rimba Priatna , Ghulam Yoniar Priatna, Elky Rimba Priyo Nugroho, Anton Pujiyanti Pujiyanti Purnamasari, Eva Putri Irwanda, Chika Putri, Sanita Putro, Rizki Listyono Rachmania, Dewi Rahma Wahdiniwaty Rahman, Fatimah Rahmawati, Nopiyanti Ramadhan Wahfianka, Ega Ramadhan, Fadlillah Ramon Arthur Ferry Tumiwa Renaldi, Rafli Renggaala, Nuniek Yuniarti Ningsih Restu Widyo Sasongko Rihfenti Ernayani Ristati, Ristati Rita Zulbetti Riyanti, Anti Riyanto, Ayu Putri Rizal Maulana, Rizal Rizqi Aji Putri, Masykurotur Rosdian, Anisa Roshy Rufaida Sofiatus Wardani sabil sabil, sabil Safari, Apay Sagita Nurul Izza Salbiyah, Mila Samalua Waoma Samiun, Aspiati A. Samosir, Hendrik ES Sapiri, Muhtar Saputra, Irwan Saripujiana, Dian Sastradireja, Dhafin Al-Rasyid Sesario, Revi Setyawan, Antonius Ary Siddiqa, Heidi Siffa, Alma Aulia Siska Amelia, Siska Sodik, M. Sofwa, Ayesa Aulia Sono, Mohammad Gifari Sri Mulatsih, Listiana Sugeng Karyadi Suhartini Salingkat SUJAI, MUHAMMAD Sumini Sumini, Sumini Sundari, Annisa Pratiwi Suprapto Suprapto Suroso, Adi SURVIVAL - - Suwandi Ng Syamsuri Syamsuri T. Maulana, T. Taime, Habel Tasrim, Tasrim Toni Dwi Putra Tri Yuniningsih Triwulandari, Ratna Upik Djaniar Usman, Said Utami, Eva Yuniarti Utami, Refi Oktafia Utiarahman, Nurnaningsih Wahju Wulandari Wardhana2, Mario Maulana Wartono Wartono Windreis, Christ Wulandari, Ai Malita Yahya, Sitti Rachmawati Yaperta, Sanita Putri Yaperta, Shanita Putri Yasyfa, Aghnia Yatima El Isma, Yatima Yoga Pangestu, Dewo Nugroho Yohan Yohan Yoniar, Ghulam Priyatna Yulistina Yulistina Yundari, Yundari Yunus Sading Yusuf, Rafli Maulana Z, Nasrul Zahra, Maisya Hayina Zahra, Maisya Hayina Zahra Zakaria, Faiz Zaki, Muhamad Zuhroh, Siti Zulaecha, Hesty Erviani