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Determinants of Financial Distress in Non-Financial State-Owned Enterprises in Indonesia Maura, Ikrana Shafa; Fajri, Mega Barokatul; Hakim, Adi Lukman
MEC-J (Management and Economics Journal) Vol 9, No 3 (2025)
Publisher : Faculty of Economics, State Islamic University of Maulana Malik Ibrahim Malang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.18860/mec-j.v9i3.28918

Abstract

The study aims to assess how liquidity, profitability, leverage, capital structure, and the audit committee influence the financial challenges faced by State-Owned Enterprises (SOEs). The research employs a purposive sampling method based on specific criteria, with 20 companies included in the study. The multiple linear correlation test reveals a strong relationship between liquidity, profitability, and company size regarding financial challenges. Analysis conducted using SPSS software indicates a significance value for the F-test, suggesting that liquidity, profitability, leverage, capital structure, and the audit committee significantly impact the financial difficulties. Furthermore, the t-test results demonstrate that liquidity, profitability, leverage, and capital structure play a role in influencing the financial challenges, whereas the audit committee does not have a significant effect.