Enrichment : Journal of Management
Vol. 12 No. 6 (2023): February: Management Science And Field

Effect of debt, profit, company size and cash flow on financial distress in financial institution companies

Hartono Rukmana (Unknown)
Mila Yulia Herosian (Universitas Prima Indonesia, Indonesia)
Erlangga Jody Fanggano (Universitas Prima Indonesia, Indonesia)
Calvin Wijaya (Universitas Prima Indonesia, Indonesia)



Article Info

Publish Date
06 Feb 2023

Abstract

The purpose of this is to test and analyze how debt, profit, company size, and cash flow affect financial distress in financing companies on the IDX for the 2016-2020 period, either partially or simultaneously. This research includes quantitative descriptive research. The population of this study was 16 financial institution companies on the Indonesia Stock Exchange and the sample used a purposive sampling technique to obtain data from 9 companies with a total of 45 observations. The statistical method is multiple linear regression analysis. The results of the research show that the classical assumptions have met the requirements. Partially (t-test), Debt, Profit, Company Size, and Cash Flow have a significant effect on Financial Distress. Simultaneously (test F) Debt, Profit, Firm Size, and Cash Flow have a significant effect on Financial Distress. The magnitude of the coefficient of determination is 97.8% while the remaining 2.2% of Financial Distress is explained by other variables not examined in this study.

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Journal Info

Abbrev

enrichment

Publisher

Subject

Economics, Econometrics & Finance

Description

The Enrichment : Journal of Management offers wide ranging and widespread analysis of all surfaces of management and science. Published two times per year, it delivers a emphasis for universal proficiency in the vital methods, techniques and areas of research; presents a opportunity for its readers ...