PENGARUH RASIO KEUANGAN TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN SEKTOR INDUSTRI

Abstract

Some causes of bankruptcy which is suffered by most companies in Indonesia in 1998 and 2008 were failure to pay the debt and decrease the income. This research aims to determine the influence of the financial ratio to financial distress on industry sector companies in the Indonesia Stock Exchange. The population that been used in this research is all the industry sector companies in Indonesia Stock Exchange. Sampling was done by using purposive sampling technique and obtained the sample of 11 companies. The results of this data analysis technique showed that multiple linear analysis has a negative relationship between leverage and liquidity with financial distress, while profitability has a positive relationship; the classical assumption test that used has met the specified criteria; model feasibility tests show that this model is feasible to use; t test shows leverage influenced the financial distress, while liquidity & profitability have no influence on financial distress. For the company should be careful in the management of capital to avoid the risk of financial distress. For the next researcher is expected to add independent variable and sample not only from 1 sector of company only but company which is in other sector to produce better comparison.
Keywords: Leverage, Liquidity, Profitability, Financial Distress