Global Advances in Business Studies
Vol. 2 No. 2 (2023): Global Advances in Business Studies (GABS)

Detection of financial distress before and during the covid-19 pandemic: evidence from an automotive industry

Harjayanti, Diana Riyana (Unknown)
Akbar, Rifqi Raffi (Unknown)
Nurmasari, Ifa (Unknown)
Octariswan, Dony (Unknown)



Article Info

Publish Date
29 Sep 2023

Abstract

This study aims to analyze the effect of profit and cash flow in predicting financial distress in automotive sub-sector companies for the 2017-2021 period. This type of research is quantitative descriptive with the data analysis method used is descriptive statistical analysis using panel data which classical assumption test, statistic analyst by E-Views version 10 with a significance level of 0.05 (5 %). The results of this study indicate that profit affect financial distress as evidenced by the results of the t-test which shows that the significance value is 0.000 < 0.05. Cash flow also affects financial distress. This can be seen from the test results which show that the significance value is 0.021 < 0.05. The results of the F test show that profit and cash flow have a simultaneous effect on financial distress. This can be seen from the significance value of 0.000 <0.05 with a coefficient of determination of 0.929 meaning that financial distress as the dependent variable is influenced by profit and cash flow as independent variables of 92.9% and 7.1% is influenced by other variables.

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Journal Info

Abbrev

gabs

Publisher

Subject

Economics, Econometrics & Finance

Description

Global Advances in Business Studies (GABS) is an international, double-blind peer-reviewed, open-access journal published by Ifma Publishing. GABS aims to provide a valuable outlet for research on business-orientated themes and topics. It publishes articles of a multi-disciplinary and ...