PENGARUH RASIO KEUANGAN TERHADAP FINANCIAL DISTRESS DENGAN FIRM SIZE SEBAGAI VARIABEL MODERASI

Abstract

ABSTRACT

This research aimed to analyze and examine the effect of leverage, liquidity, and operating capacity on financial distress with firm size as the moderating variable. Each independent variable (leverage, liquidity, and operating capacity) was measured by DER, CR, and TATO. Moreover, the dependent variable (financial distress) was measured by ICR. The research was quantitative. The population was Food and Beverage companies listed on the Indonesia Stock Exchange (IDX) during 2017-2021. Furthermore, the data collection technique used purposive sampling. In line with that, there were 175 data collected. However, only 123 data were taken after having an outlier. The data analysis technique used moderation regression. The result concluded that leverage did not affect financial distress. However, liquidity had a positive effect on financial distress. Likewise, operating capacity had a positive effect on financial distress. Additionally, firm size could moderate negatively or weaken the effect of leverage on financial distress. Likewise, firm size could moderate negatively or weaken the effect of liquidity on financial distress. However, firm size could moderate positively or strengthen the effect of operating capacity on financial distress.