PENGARUH LEVERAGE, LIKUIDITAS DAN KEPEMILIKAN MANAJERIAL TERHADAP FINANCIAL DISTRESS

Abstract

This research aimed to examine the effect of leverage, liquidity, and managerial ownership on financial distress.
The leverage was measured by Debt to Asset Ratio (DAR), liquidity was measured by Current Ratio (CR), and
ownership structure was measured by managerial ownership. The research was quantitative. The data collection
technique used purposive sampling, in which the sample was based on criteria given. In line with that, there were
70 samples from 14 Food and Beverages companies which were listed on Indonesia StockExchange (IDX) during
2016-2020. Moreover, the data analysis technique used logistic regression with SPSS 25. The research result
concluded that leverage did not affect financial distress. It was caused as companies had higher debts, but owned
higher capital. So that, the numberof debts did not affect financial distress On the other hand, liquidity had a
negative effect on financial distress. This showed the higher the company's currentasset to fulfill their obligation
was, the little probability the company would have financial distress. In contrast, managerial ownership did not affect
financial distress, It was causedsince the amount of stock which was owned by the management did not affect
financial distress.