PENGARUH LEVERAGE, LIKUIDITAS DAN OPINI AUDITOR TERHADAP FINANCIAL DISTRESS PERUSAHAAN TEKSTIL DAN GARMEN DI BEI

Abstract

Financial distress can happen as there are short or long-term financial difficulties. It means, financial distress can be sign of company which is going to be bankrupt. While, the variables were consist of financial, referred to leverage and non-financial, reffered to liquidity and auditor opinion. Moreover, the research aimed to find out the effect of leverage, liquidity, and auditor opinion as means of predict financial distress. Furthermore, the population was 18 Textile and Garment companies which were listed on Indonesia Stock Exchange 2013-2017. In addition, the sampling collection technique used purposive sampling, in which there were 10 companies as sample and had fulfilled the criteria. For the data analysis technique, it used logistic regression. The research result concluded the leverage had positive and significant effect on financial distress, with significance of 5%. Likewises, liquidity had affected on financial distress. On other hand, the auditor opinion did not affect on financial distress, as the opinion given had related on financial statement fairness and did not reflect the companies condition.
Keywords: financial distress, leverage, liquidity, auditor opinion