PENGARUH LIKUIDITAS, PROFITABILITAS, LEVERAGE DAN ARUS KAS TERHADAP FINANCIAL DISTRESS

Abstract

This research aimed to find out the effectto liquidity, profitability, leverage, and cash flow on financial distress
condition. While, the population was Real Estate and Property companies which were listed on Indonesia stock
Exchange during 2015-2018. Moreover, the data collection technique used purposive sampling, in which the
sample was based on criteria given. In line with, there werw 10 companies as sample or 40 firm years.
Futhermore, the data analysis technique used logistics regression. The research result concluded liquidity did
not effect financial distres condition. It meant, companies could be able to pay debt propeely. Consequently,
mostly the companies wold not had financial distress condition. Likewise, profitability did not effect financial
distress condition. This meant, the lower the profit’scompanies, the les the companies would have financial
distress condition was. On the other hand, leverage had positive effect on financial distress condition. In other
words, when companies had higher its debt but it was not followed by higher sales result, there would be
tendency of failure in paying debt. This made companies are in financial distress condition. In contrast, cash
flow did not effect financial distress condition. This meant, as companies had good operational cash flow, they
would not have financial distress condition.
Keyword: liquidity, profitability, leverage, cash flow, financial distress