Journal of Management, Accounting, General Finance and International Economic Issues (MARGINAL)
Vol. 3 No. 2 (2024): MARCH

FINANCIAL PERFORMANCE TO DETERMINE FINANCIAL DISTRESS CONDITIONS

Savery, Yustina Indi (Unknown)
Haninun, Haninun (Unknown)
Riswan, Riswan (Unknown)



Article Info

Publish Date
20 Feb 2024

Abstract

The aim of this study is to examine the relationship between financial performance and the prediction of financial distress in a mining sector company listed on the Indonesia Stock Exchange from 2018 to 2022. A quantitative research method was employed for this study. The study focused on three independent variables, namely profitability, liquidity, and leverage, which were used to measure financial performance. The dependent variable, financial distress, was measured using the Altman Z-score model. A purposive sampling method was used to select 90 samples for this research, including 18 companies in the mining sector listed on the Indonesia Stock Exchange from 2018 to 2022. The data was analyzed using SPSS 17, with logistic regression as the chosen analysis method. The findings of this study indicate that profitability, as measured by ROA, and liquidity, as measured by CR, have a negative and significant impact on financial distress. Additionally, leverage, as proxied by DAR, has a positive and significant effect on financial distress.

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Journal Info

Abbrev

MARGINAL

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Environmental Science Social Sciences

Description

Journal of Management, Accounting, General Finance and International Economic Issues (MARGINAL) provides a scientific discourse about accounting, business, management, and economic issues both practically and conceptually. The published articles at this journal cover various topics from the result ...