Open AccessFACTORS THAT AFFECT FINANCIAL DISTRESS IN INDONESIA
Author(s) -
Yoyo Susdaryo,
Nunung Ayu Sofiati,
Ita Kumaratih,
Nandan Limakrisna,
Mohd Hassan Che Haat,
Zikri Muhammad,
Astrin Kusumawardani,
Jumadil Saputra
Publication year - 2021
Publication title -
international journal of research - granthaalayah
Language(s) - English
Resource type - Journals
eISSN - 2394-3629
pISSN - 2350-0530
DOI - 10.29121/granthaalayah.v9.i9.2021.4269
Subject(s) - profitability index , market liquidity , leverage (statistics) , financial distress , distress , business , interest rate , affect (linguistics) , monetary economics , economics , finance , financial system , psychology , mathematics , statistics , communication , psychotherapist
The results show that, it is proven that the variable liquidity and interest rates have a negative effect on financial distress. Meanwhile, the variables of Profitability, Leverage and Company Size have a positive effect on financial distress. While the Economic Stimulus variable is known to be the relationship between all variables of Liquidity, Profitability, Leverage, Company Size and Interest Rate on variables to Financial Distress. This means that company leaders must take into account liquidity, profitability, leverage, company size and interest rates to avoid financial distress.