PENGARUH FAKTOR FUNDAMENTAL DAN NON-FUNDAMENTAL TERHADAP FINANCIAL DISTRESS

Abstract

This research aimed to examine and analyze the effect of profitability (Return on Asset), liquidity (Current Ratio), leverage (Debt to Equity Ratio), and institutional ownership (KI) on the financial distress in the manufacturing sector listed on the Indonesia Stock Exchange (IDX) in the 2017-2020 periods. The research was quantitative. Furthermore, the research collection method used purposive sampling, i.e., sample selection based on the determined criteria. This research was measured by logistic regressions analysis. The research sample used 118 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2020. It was 472 research observation data. The hypothesis test result showed that: 1) Profitability had a negative on financial distress in the manufacturing sector listed on the Indonesia Stock Exchange. 2) Liquidity had a negative effect on financial distress in the manufacturing sector listed on the Indonesia Stock Exchange. 3) Leverage had a positive effect on financial distress in the manufacturing sector listed on the Indonesia Stock Exchange. 4) Institutional ownership did not affect the financial distress in the manufacturing sector listed on the Indonesia Stock Exchange.