Determination of Financial Distress and Stock Prices: The Effect of Financial Performance and Sales Growth (Financial Management Review Literature)

Elviana, Elviana; Ali, Hapzi

doi:10.38035/dijefa.v3i3.1323

Cited by 7 publications

(7 citation statements)

References 3 publications

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“…Based on signal theory, the higher the sales obtained will give a positive signal to external parties such as creditors because the company can pay its obligations and investors because the injection of funds is successful in the company. The results of this study are consistent with research by Elviana & Ali (2022) and Putri (2021) which revealed that sales growth has an…”

Section: Resultssupporting

confidence: 93%

The Effects of Financial Performance and Macroeconomics on Financial Distress in The Energy Sector Before and During Covid-19 Pandemic

Nurrahmi,

Siregar,

Bandono

2023

brcs

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The condition of financial distress is where the company's finances are in a bad condition which then becomes an early indicator of bankruptcy for companies to anticipate or restructure so that companies do not experience bankruptcy and liquidation. This study aims to analyze the influence of financial ratios and macroeconomic performance (interest rates, economic growth, and covid-19) on financial distress before and during the Covid-19 pandemic in energy companies listed on the Indonesia Stock Exchange for the period 2017-2021. The data analysis technique is panel data regression analysis using EViews 12. The population in this study is companies in the energy sector listed on the IDX. The results showed that the condition of financial distress during the pandemic was generally higher than before the Covid-19 pandemic. The results of the analysis conducted in 2017-2021 show that as many as 12 out of 53 companies in the mining sector are experiencing financial distress. A total sample of 12.83% indicated financial distress. Financial ratios and macroeconomic performance (interest rates, economic growth, and covid-19) simultaneously influence financial distress. Partially profitability, liquidity, leverage, and sales growth affect financial distress, while activity, cash flow from the operation, interest rates, economic growth, and covid-19 do not affect financial distress.

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Section: Resultssupporting

confidence: 93%

The Effects of Financial Performance and Macroeconomics on Financial Distress in The Energy Sector Before and During Covid-19 Pandemic

Nurrahmi,

Siregar,

Bandono

2023

brcs

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“…Shareholders with a high current ratio may bear risk due to the perception that the company is relatively inferior and less capable of generating profits. Research conducted by Zaman (2021), Elviana & Ali (2022) and Ramdany & Manurung (2022) shown a statistically significant and positive correlation between the current ratio and stock price. On the other hand, Ariesa et al (2020) and Prianda et al (2022) elucidate why the current ratio and stock price have a statistically significant negative connection.…”

Section: Current Ratio To Stock Pricementioning

confidence: 91%

Analysis Stock Price: Earnings per Share as Moderating Variable

Wicaksono,

Aminah,

Sopiani

et al. 2024

ijbesd

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This study seeks to determine the influence of moderating factors on the company's financial performance on the stock price in the consumer cyclical sector, such as current ratio, debt-to-equity ratio, return on equity, and earnings per share. The study's population consisted of industrial enterprises in the consumer cyclical sector sourced from the 2020–2022 Indonesia Stock Exchange website. Purposive sampling was used to acquire 31 firms for the study. Multiple regression and moderate regression analyses are data analysis procedures where Stata 17 software is used for data processing. Furthermore, this analysis assumes that the debt-to-equity ratio, return on equity, and current ratio affect stock prices. The debt-to-equity ratio, return on equity, and current ratio are all impacted by earnings per share. Stock prices might be impacted by it as well. Data analysis indicates that although the debt-to-equity and current ratios do not affect stock prices, the return on equity does. If profits per share rise, stock prices may be less impacted by debt-to-equity and current ratios. Earnings per share cannot moderate the Return on Equity on stock prices.

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“…Financial distress can also be defined as a condition in which a company fails to fulfill its obligations to pay or redeem debts to creditors (Isayas, 2021). Financial distress that occurs in a company will affect investors or creditors who want to invest in the company (Elviana and Ali, 2022) . From the three definitions above, financial distress can be defined as a condition that describes the challenges and difficulties faced by companies in generating sufficient cash inflows to meet obligations to repay debts owned by the company that may affect company's stakeholders.…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of Leverage, Profitability, Liquidity Ratio, and Inflation towards Financial Distress

Oktavian

Handoyo

2023

IJMSA

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Research on financial distress is an important component in the assessment of internal and external parties of the company to see whether the company’s financial condition is in a good position or is in a bad position. This is important for internal parties in the process of reviewing the company’s financial condition to carry out decision-making to improve or enhance the company’s financial capabilities. This is also important for external parties in the decision-making process in determining whether the company is worth investing in. This study aims to analyze the effect of financial ratios in the form of leverage, profitability, and liquidity ratios along with inflation on financial distress in manufacturing companies listed on the Indonesia Stock Exchange. This study used panel data regression with a purposive sampling method with a total of 103 samples. Data processing in this study uses Eviews 9. The results of this study indicate that there is a positive influence between profitability and liquidity on financial distress indicator. As for other variables, leverage has a negative effect on financial distress indicator and inflation has no effect on financial distress indicator. This research can contribute to investors and company management in carrying out the decision making process by paying attention to the company's financial ratios and inflation in Indonesia and also contribute to developing knowledge in the field of finance study as it enhance the causality of financial distress. Suggestions that can be given for further research are to use other independent variables in the form of corporate governance and corporate social responsibility disclosure which may show results that better reflect the company’s qualitative capabilities.

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Determination of Financial Distress and Stock Prices: The Effect of Financial Performance and Sales Growth (Financial Management Review Literature)

Cited by 7 publications

References 3 publications

The Effects of Financial Performance and Macroeconomics on Financial Distress in The Energy Sector Before and During Covid-19 Pandemic

The Effects of Financial Performance and Macroeconomics on Financial Distress in The Energy Sector Before and During Covid-19 Pandemic

Analysis Stock Price: Earnings per Share as Moderating Variable

Effect of Leverage, Profitability, Liquidity Ratio, and Inflation towards Financial Distress

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