Jurnal Manajemen Bisnis dan Kewirausahaan
Vol. 5 No. 2 (2025): SEPTEMBER

The Effect of Financial Factors on Financial Distress in Manufacturing Companies on the IDX

Marselino Wau (Unknown)
Jhon Firman Fau (Universitas Nias Raya)
Ferdinand Tharorogo Fau (Universitas Nias Raya)
Shindy Dwita Nuansari (Unknown)



Article Info

Publish Date
20 Aug 2025

Abstract

This study aims to find financial factors that impact financial Distress in 200 manufacturing companies listed on the Indonesia Stock Exchange (IDX). This study uses secondary data from these companies' annual financial statements. The variables analyzed include cash flow, profitability, and leverage. The analysis method used is multiple regression to determine the effect of each variable on financial Distress. The results showed that profitability significantly affects financial Distress, while leverage has a negative but insignificant effect. Cash flow does not show a significant impact on financial Distress. This study highlights the importance of understanding the interaction between financial factors in managing the risk of financial Distress in manufacturing companies. The results of this study provide practical implications for company management in maintaining financial health by emphasizing increasing profitability and managing leverage appropriately.

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Journal Info

Abbrev

jamanika

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

Jamanika is open access journal that published both quantitative and qualitative research articles related to the fields of management and entrepreneurship. Subjects suitable for publication include the following fields: - Finance Management - Operation Management - Human Resource Management - ...