IMPACT OF FINANCIAL DISTRESS AND FINANCING CONSTRAINTS ON TRADE CREDIT

Tri Mulyana (Magister Manajemen, Fakultas Ekonomi dan Busnis, Universitas Pelita Harapan)
Sung Suk Kim (Universitas Pelita Harapan)

JMBI UNSRAT (Jurnal Ilmiah Manajemen Bisnis dan Inovasi Universitas Sam Ratulangi)
Vol 10 No 1 (2023): JMBI UNSRAT Volume 10 Nomor 1

Purpose this study to examine the effect of (1) Financial Distress and (2) Financial Constraints on trade credit in companies listed on the Indonesia Stock Exchange (IDX). The Sampel in this study are all companies listed on the Indonesia Stock Exchange, except the banking and financing industries from 2020 to 2011. This study used the regression Fixed Effect Model to analyze secondary data from S&P Capital IQ. The study results show that (1) Financial Distress and Financial Constraint have a negative effect on Accounts Payable, (2) Financial Distress and Financial Constraint have a positive effect on Accounts Receivable.