Do Accounting, Market, and Macroeconomic Factors Affect Financial Distress? Evidence in Indonesia

Taufik, Muhammad; Sugianto, Clarita Valeria

doi:10.20473/tijab.v5.i2.2021.31061

Cited by 3 publications

(3 citation statements)

References 55 publications

(88 reference statements)

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“…Sehingga apabila nilai perusahaan mampu memoderasi serta memperkuat pengaruh inflasi terhadap financial distress maka akan tersampaikan isyarat yang meyakinkan untuk investor dalam berinvestasi di perusahaan. Sejalan dengan penelitian Pertiwi (2018), Ceylan (2021), dan Taufik & Sugianto (2021) yang menyatakan bahwa naiknya tingkat inflasi akan membuat kemungkinan terjadinya financial distress semakin mengecil, serta penelitian Nisak (2021) dan Yulitasari & Yulistina (2019) menyatakan kenaikan nilai perusahaan akan mempengaruhi mengecilnya kemungkinan terjadinya financial distress. Jika dilihat maka kedua variabel sama-sama mempunyai pengaruh yang positif serta siginifikan terhadap financial distress.…”

Section: Pengembangan Hipotesisunclassified

Pengaruh Profitabilitas, Makroekonomi, Firm Size Terhadap Financial Distress Dengan Nilai Perusahaan Sebagai Variabel Moderating

Heliani

Elisah

2022

Owner

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One of the key contributors to the country's economic health is the banking industry. From 2017 to 2021, there were eight banking companies that were liquidated. So it is necessary to anticipate from the beginning so that bankruptcy does not occur. One way to see if a company is in financial distress can be done using the Altman's Z-Score method. This investigation was carried out with the intention of measuring and knowing the extent to which profitability, macroeconomic, and firm size ratios are proxied by Return On Assets (ROA), inflation, and total assets to financial distress using the Altman's Z-Score method through a moderating variable in the form of firm value proxied by PBV. This is a quantitative study that relies on secondary data gathered through a literature review. The population of this study is the whole banking industry in Indonesia, with a total sample of 23 enterprises acquired using the purposive sampling approach. This study employs panel data using the Moderated Regression Analysis (MRA) approach, which is carried out using Econometric Views (Eviews) version 10. According to the findings of this study, profitability had a favorable influence on financial distress, but macroeconomics, business size, and firm value had no effect. Meanwhile, firm value is deemed unable to moderate the independent variable on the dependent variable in this study, so it is unknown whether firm value increases or weakens the independent variable on the dependent variable.

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Section: Pengembangan Hipotesisunclassified

Pengaruh Profitabilitas, Makroekonomi, Firm Size Terhadap Financial Distress Dengan Nilai Perusahaan Sebagai Variabel Moderating

Heliani

Elisah

2022

Owner

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“…Penurunan ini disebut sebagai kesulitan keuangan, dimana suatu perusahaan mengalami kemerosotan dalam kinerja bisnis, krisis atau kurang sehat sebelum menjadi pailit (Candradewi & Rahyuda, 2021). Kriteria perusahaan memasuki kesulitan keuangan dapat diukur dengan beberapa rasio, seperti rasio modal kerja dengan jumlah aset, rasio laba ditahan dengan jumlah aset, rasio laba sebelum bunga dan pajak dengan jumlah aset, dan rasio nilai buku ekuitas dengan jumlah utang (M. Taufik & Sugianto, 2021). Suatu perusahaan yang pertumbuhan laba per sahamnya negatif juga dapat dikatakan sedang mengalami kesulitan keuangan dan kebanyakan karena gagal membayar utang obligasi (Ud-Din et al, 2020) atau tata kelola yang gagal/tidak efektif (Sewpersadh (2022).…”

Section: Kajian Literatur Dan Pengembangan Hipotesisunclassified

Kesulitan Keuangan: Efek Struktur Kepemilikan, Karakteristik Dewan Direksi, dan Indeks Tata Kelola Perusahaan

Williansyah

Meiliana

2022

gfa

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Purpose – This study aims to examine the effect of the corporate governance on the firm financial distress. The independent variables consisted of ownership structure (managerial, foreign, institutional, family, and block holder’s), board characteristics (size, independent, educational background, meeting, and gender) and corporate governance index. Research Method – This study uses 168 sample companies selected by purposive sampling method. The hypotheses testing uses panel regression method. Findings – The result shows 116 of 168 sample companies (IDX) experienced financial distress. It has been proven that financial distress can be significantly reduced by increasing concentrated ownership and board education. In addition, foreign ownership and board size have a significant and positive impact on financial distress. However, managerial ownership, family ownership, institutional ownership, board independence, board meetings, board gender, and corporate governance index do not have an impact on financial distress. Implication – The findings of this study imply that financial distress occurs by the presence of foreign ownership because of rarely involved in company management. In addition, to avoid the risk of financial distress the company can be anticipated by improving the quality board of directors (education, expertise, CEO tenure) and strengthening the internal control.

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“…According toTaufik and Sugianto (2021), Indonesia's low inflation rate from 2016 to 2020 indicates a decrease in purchasing power or deflation, indicating that Indonesia's macroeconomy lacks sufficient economic fundamentals to cause financial distress in the company. This condition is also corroborated by inflation statistics from the Bank Dewi, D. N.,Murhadi, W. R., Sutejo, B. S. (2023).…”

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Financial Ratios, Corporate Governance, and Macroeconomic Indicators in Predicting Financial Distress

Dewi,

Murhadi,

Sutejo

2023

J. of Law and Sust. Develop.

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Purpose: This study analyzed the effect of financial ratios, corporate governance, and macroeconomic variables on financial distress. This research was conducted during the covid-19 pandemic when many companies experienced difficulties due to activity restrictions during the pandemic. Theoretical framework: Prolonged financial difficulty can lead to the company's insolvency. As a result, understanding the company's health status is critical. Internal company factors, such as the firm's financial situation and company management, as reflected in corporate governance, and external company factors, such as macroeconomic conditions, can all influence the occurrence of financial hardship in the company. Design/Methodology/Approach: This study uses a sample of property and real estate sector companies listed on the Indonesia stock exchange. The model used was 270 observations. This research is a quantitative approach using a logistic regression test. The unit of analysis in this study is property, real estate, and building construction sector companies listed on the Indonesia Stock Exchange, where each company is undoubtedly influenced by internal company factors, namely financial ratios and corporate governance, and external factors, namely macroeconomics. Findings: The results showed that the relevant financial ratios are sales total assets and retained earnings to total assets. At the same time, the corporate governance included in the model is director size and macroeconomic variables in the form of inflation entering the financial distress model. The accuracy of the model in classifying its observations is 84.1%. Research, practical & social implications: The implication of this study's results is that financial ratios, governance, and macroeconomic indicators can be used as a benchmark to detect the possibility of financial distress. Originality/Value: This research was conducted in the real estate industry during the Covid-19 pandemic when many companies experienced financial difficulties. This research combines financial ratios, corporate governance, and macroeconomics that impact the possibility of financial distress. This research is different because it combines financial ratios that reflect company performance, governance practices, and macroeconomic indicators to predict bankruptcy.

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Do Accounting, Market, and Macroeconomic Factors Affect Financial Distress? Evidence in Indonesia

Cited by 3 publications

References 55 publications

Pengaruh Profitabilitas, Makroekonomi, Firm Size Terhadap Financial Distress Dengan Nilai Perusahaan Sebagai Variabel Moderating

Pengaruh Profitabilitas, Makroekonomi, Firm Size Terhadap Financial Distress Dengan Nilai Perusahaan Sebagai Variabel Moderating

Kesulitan Keuangan: Efek Struktur Kepemilikan, Karakteristik Dewan Direksi, dan Indeks Tata Kelola Perusahaan

Financial Ratios, Corporate Governance, and Macroeconomic Indicators in Predicting Financial Distress

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