PENGARUH RASIO KEUANGAN DAN UKURAN PERUSAHAAN TERHADAP FINANCIAL DISTRESS

Abstract

This research aimed to find out the effect of financial ratio and firm size on financial distress. While, financial ratio was measured by current ratio, debt to equity ratio was measured by current ratio, debt to equity ratio, return on asset, and sales growth. The research was quantitative with secondary data, which in the form of companies’ financial statements. Moreover, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with, there were 95 samples from 19 manufacturing companies which were listed on Indonesia Stock Exchange during 2016-2020. Furthermore, financial distress was referred to as the dummy variable with the first category for companies with financial distress. Meanwhile, it was categorized as zero for companies without financial distress. Additionally, the data analysis technique used logistics regression with SPSS 25. The research result concluded that return on asset had a negative effect on financial distress. On the other hand, current ratio, debt to equity ratio, sales growth, and firm size did not affect financial distress.
Keywords: financial ratio, firm size, financial distress