Jurnal Ilmiah Manajemen Kesatuan
Vol. 13 No. 4 (2025): JIMKES Edisi Juli 2025

Impact of Liquidity, Leverage, and Operating Cash Flow on Financial Distress with Firm Size Moderation

Sukma Dewi, Nabila (Unknown)
Edastami, Mayang Sari (Unknown)



Article Info

Publish Date
01 Jul 2025

Abstract

This research is to determine the function of company size as a moderating variable in transportation companies listed on the Indonesia Stock Exchange from 2019 to 2023, as well as the influence of liquidity, leverage and operating cash flow on financial distress. Secondary data in the form of annual financial reports of transportation companies listed on the IDX was used in this research. Structural Equation Modeling is analysis technique used, while SmartPLS is used as a bootstrapping method to examine the correlations between the model's variables. The findings show that leverage has a major impact on business size, with a higher level of leverage leading to a smaller firm. Financial distress is significantly influenced by operating cash flow as well; a positive correlation indicates that businesses are under financial strain. In the suggested model, financial distress is not directly influenced by business size, liquidity, leverage, or operating cash flow, as these relationships do not demonstrate substantial effects. Liquidity and operating cash flow also have little influence on business size, suggesting that these factors are not the main factors influencing firm size in the sample.

Copyrights © 2025






Journal Info

Abbrev

jimkes

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Jurnal Ilmiah Manajemen Kesatuan (JIMKES) dikelola dan diterbitkan oleh Lembaga Penelitian dan Pengabdian Kepada Masyarakat (LPPM) Institut Bisnis dan Informatika Kesatuan bekerjasama dengan Fakultas Bisnis dan Fakultas Vokasional IBI ...