PENGARUH LIKUIDITAS, PERTUMBUHAN PERUSAHAAN, DAN LEVERAGE TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

This research aimed to find out the effect of liquidity, company growth, and leverage on financial distress. The research population was manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2017 until 2020. Moreover, the dependent variable was financial distress. While the independent variables were liquidity, company growth, and leverage. Furthermore, the research sampling method used purposive sampling. In line with that, there were 40 data samples. Additionally, the research was quantitative. In addition, the data analysis technique used logistic regression analysis. The research result showed that liquidity had a positive effect on financial distress. This meant a high current ratio came from uncollectible accounts payable. Consequently, the company did not have enough cash flow for the company’s operations, which supported the company's financial distress. On the other hand, the company’s growth did not affect the financial distress; no matter how significant it was. In contrast, leverage had a positive effect on financial distress. In other words, a high debt was not followed by higher operations which produced a high rate of return. As a result, the return caused financial distress.