Factors Affecting Financial Difficulty

DOI

10.2991/aebmr.k.220501.027How to use a DOI?

Keywords

Liquidity; Leverage; Operating Capacity; Financial Difficulty

Abstract

The purpose of this study is to ascertain the effect of financial difficulties on liquidity, leverage, operating capacity, sales growth, firm size, and institutional ownership in manufacturing companies listed on the Indonesian Stock Exchange (IDX) between 2017 and 2019. The purposive sampling technique was used with a total of 13 companies. Multiple Linear Regression Analysis was used to process the data, which is aided by Econometrics Views (Eviews) version 11 and Microsoft Excel 2013. The study’s findings indicate that liquidity, operating capacity, firm size, and institutional ownership have no discernible effect on financial distress, leverage has a significant positive effect on financial distress, and sales growth has a positive and significant effect on financial distress.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Hadi Cahyadi
AU  - Andy Andy
AU  - Henryanto Wijaya
AU  - Susanto Salim
AU  - Alya Imharabbania P.
AU  - Josephine Gabriella
PY  - 2022
DA  - 2022/05/11
TI  - Factors Affecting Financial Difficulty
BT  - Proceedings of the tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021)
PB  - Atlantis Press
SP  - 170
EP  - 177
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220501.027
DO  - 10.2991/aebmr.k.220501.027
ID  - Cahyadi2022
ER  -