PENGARUH STRUKTUR MODAL, UKURAN PERUSAHAAN, DAN SALES GROWTH TERHADAP FINANCIAL DISTRESS

Abstract

This research aimed to determine the effect of capital structure, firm size. and sales growth on the financial distress at the Properties and Real Estate companies. Furthermore, the capital structure was measured by Debt to Equity Ratio, firm size was measured by Ln Total Assets, and sales growth was measured by sales growth. The research was quantitative. The data were secondary, in the form of companies' financial reports. Moreover, the data collection technique used purposive sampling with determined criteria. In line with that, there were 80 data samples from 20 Property and Real Estate companies listed on the Indonesia Stock Estate during 2019-2022. Additionally, the data analysis technique used multiple linear regression analysis. The result showed that capital structure had a negative effect on financial distress. It meant that financial distress indicated that the greater the debt (Debt to Equity Ratio) was, the higher the financial distress would be. On the other hand, firm size had a positive effect on financial distress. In other words, the greater the total asset value was, the smaller the level of financial distress would be. However, sales growth didn't affect the financial distress.