PENGARUH PROFITABILITAS, LIKUIDITAS, DAN LEVERAGE TERHADAP FINANCIAL DISTRESS

Abstract

This research aimed to examine the effect of profitability, liquidity and leverage on Financial Distress condition which was measured by Altman Z-Score on manufacturing companies which were listed on Indonesia Stock Exchange (IDX) during 2014-2018. The research was causal-comparative with quantitative as the approach. While, the data were secondary in from of financial statement and annual report which taken from Investment Gallery of Indonesia Stock Exchange. Moreover, the data collection technique used purposive sampling in which the sample was based on criteria given. In line with, there were 250 data from 50 manufacturing companies within 5 years obeservation, which were listed on Indonesia Stock Exchange (IDX) during 2014-2018. Furthermore, the data analysis technique used multiple linier regression with SPSS (Statistical Product and Service Solution) 21. The research result concluded profitability had positive effect on Financial Distress condition. Likewise, liquidity had positive effect on Financial Distress condition. On the other hand, leverage had negative effect on Financial Distress condition of manufacturing companies which were listed on Indonesia Stock Exchange.
Keywords: profitability, liquidity, leverage, financial distress