Open AccessPredictions of Financial Distress in Consumption Goods Industrial Companies Listed on the Indonesia Stock Exchange in 2016-2018
Author(s) -
Muhammad Khusni Mubarrok,
Mohammad Wasil,
I. G. A. Aju Nitya Dharmani
Publication year - 2020
Publication title -
quantitative economics and management studies
Language(s) - English
Resource type - Journals
ISSN - 2722-6247
DOI - 10.35877/454ri.qems1179
Subject(s) - stock exchange , nonprobability sampling , asset turnover , business , financial ratio , population , logistic regression , distress , regression analysis , current ratio , actuarial science , return on assets , finance , statistics , psychology , medicine , mathematics , environmental health , psychotherapist
This study aims to determine the prediction of financial distress in the Consumer Goods Industry companies listed on the Indonesia Stock Exchange. The research period used was 2016-2018. This research on financial distress prediction uses a quantitative approach. The study population includes all Consumer Goods Industry companies listed on the Indonesia Stock Exchange in the 2016-2018 period. The sample is determined by purposive sampling technique. The data analysis method used is logistic regression analysis. This study aims to test and prove whether DAR, CR, TATO, and ROA affect Financial Distress. The data in this study came from secondary data obtained through documentation techniques. Data analysis by logistic regression partially used SPSS for window version 25. The results showed that (1) debt asset to ratio (DAR) had no positive effect on financial distress, (2) current ratio (CR) has a negative but not significant effect on financial distress, (3) total asset turnover (TATO) has no negative effect on financial distress, (4) return on assets (ROA) has a negative and significant effect on financial distress.