PENGARUH KINERJA KEUANGAN DAN UKURAN PERUSAHAAN TERHADAP FINANCIAL DISTRESS (PADA PERUSAHAAN TRANSPORTASI YANG TERDAFTAR DI BEI)

Abstract

This research aimed to examine the effect of financial performance and firm size on financial distress. The financial
performance was namely profitability, liquidity, and leverage. Moreover, the population was transportation
companies that were listed on Indonesia Stock Exchange (IDX) 2017-2020. Furthermore, the research was
quantitative. Additionally, the data were secondary, in the form of companies’ financial statements that were listed
on IDX. For the data collection technique, it used purposive sampling. In line with that, there were 17 companies
that fulfilled the criteria as the sample. In addition, the data analysis technique used multiple linear regression
with SPSS 23, with financial distress referred to EPS. The research result concluded that profitability which
referred to ROA and leverage which referred to DAR had a positive effect on financial distress. It showed that the
higher the profitability was, the higher the financial distress would be. While the lower the leverage was, the lower
financial distress would happen. On the other hand, liquidity which referred to CR and firm size did not affect
financial distress. This showed that the fluctuation of liquidity did not affect financial distress, since the companies
would fulfill their obligations and the firm size did not affect financial distress.