The Effect of Liquidity, Leverage, Profitability, Operating Capacity, and Managerial Agency Cost on Financial Distress of Manufacturing Companies Listed in Indonesian Stock Exchange

DOI

10.2991/icoi-19.2019.114How to use a DOI?

Keywords

liquidity, leverage, profitability, operating capacity, managerial agency cost.

Abstract

This study aims to analyze the effect of liquidity, leverage, profitability, operating capacity, and managerial agency cost on financial distress. Using purposive sampling, 203 manufacturing companies listed on the Indonesian stock exchange for the period 2015 – 2017 are determined as a sample. Logistic regression was analyzed using SPSS 19 software. The results show that liquidity and managerial agency cost have no effect on financial distress. Leverage further has a significant positive effect on financial distress, whereas profitability and operating capacity have a significant negative effect on financial distress.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yeye Susilowati
AU  - Titiek Suwarti
AU  - Elen Puspitasari
AU  - Farrah Anggita Nurmaliani
PY  - 2019/10
DA  - 2019/10
TI  - The Effect of Liquidity, Leverage, Profitability, Operating Capacity, and Managerial Agency Cost on Financial Distress of Manufacturing Companies Listed in Indonesian Stock Exchange
BT  - Proceedings of the 2019 International Conference on Organizational Innovation (ICOI 2019)
PB  - Atlantis Press
SP  - 651
EP  - 656
SN  - 2352-5428
UR  - https://doi.org/10.2991/icoi-19.2019.114
DO  - 10.2991/icoi-19.2019.114
ID  - Susilowati2019/10
ER  -