Management and Economics Journal (MEC-J)
Vol 8, No 2 (2024)

Profitability, Liquidity, Board Size, and Gender Diversity on Financial Distress

Khoir, Rif'ah Khusniah Aimmatul (Unknown)
Wafiroh, Novi Lailiyul (Unknown)



Article Info

Publish Date
14 Aug 2024

Abstract

The company was founded with the hope of making a profit, but when the profits obtained experience a continuous decline, it can result in financial distress, where the company's financial condition experiences a decline in income. Financial distress can occur due to two indicators: financial and non-financial. This research aims to analyze the influence of profitability, liquidity, board size, and gender diversity on financial distress. The companies used as research samples are transportation and logistics companies in 2018–2022, with a total of 80 company samples during the research period. Using a quantitative approach with purposive sampling methods. In hypothesis testing, the analysis chosen is panel data analysis using the Eviews12 program. The research shows that profitability and liquidity have an effect on financial distress. It can be concluded that when the company has profitability and liquidity that tend to be low, the level of financial distress will tend to be high. While board size and gender diversity have no effect on financial distress, through these findings, it is known that board size and gender diversity are not able to guarantee that the company can avoid financial distress problems.

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Journal Info

Abbrev

mec

Publisher

Subject

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

Description

Management and Economics Journal (MEC-J) is a peer-reviewed and open access journal that focuses on management and economics fields. This journal publishes original articles, reviews, and also interesting case reports. Letters and commentaries of our published articles are welcome. Subjects suitable ...