ojs2 has produced an error Message: WARNING: Invalid argument supplied for foreach() In file: /home/jab1/public_html/lib/pkp/classes/core/Core.inc.php At line: 149 Stacktrace: File: /home/jab1/public_html/lib/pkp/classes/core/Core.inc.php line 149 Function: PKPApplication->errorHandler(2, "Invalid argument supplied for foreach()", "/home/jab1/public_html/lib/pkp/classes/core/Core.inc.php", 149, Array(6)) File: /home/jab1/public_html/lib/pkp/classes/core/PKPRequest.inc.php line 463 Function: Core->isUserAgentBot("Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)") File: /home/jab1/public_html/plugins/generic/usageEvent/UsageEventPlugin.inc.php line 353 Function: PKPRequest->isBot() File: /home/jab1/public_html/plugins/generic/usageEvent/UsageEventPlugin.inc.php line 106 Function: UsageEventPlugin->_buildUsageEvent("TemplateManager::display", Array(5)) File: (unknown) line (unknown) Function: UsageEventPlugin->getUsageEvent("TemplateManager::display", Array(5)) File: /home/jab1/public_html/lib/pkp/classes/plugins/HookRegistry.inc.php line 89 Function: call_user_func(Array(2), "TemplateManager::display", Array(5)) File: /home/jab1/public_html/lib/pkp/classes/template/PKPTemplateManager.inc.php line 332 Function: HookRegistry->call("TemplateManager::display", Array(5)) File: /home/jab1/public_html/pages/article/ArticleHandler.inc.php line 224 Function: PKPTemplateManager->display("article/article.tpl") File: (unknown) line (unknown) Function: ArticleHandler->view(Array(2), Object(Request)) File: /home/jab1/public_html/lib/pkp/classes/core/PKPRouter.inc.php line 362 Function: call_user_func(Array(2), Array(2), Object(Request)) File: /home/jab1/public_html/lib/pkp/classes/core/PKPPageRouter.inc.php line 220 Function: PKPRouter->_authorizeInitializeAndCallRequest(Array(2), Object(Request), Array(2), False) File: /home/jab1/public_html/lib/pkp/classes/core/Dispatcher.inc.php line 134 Function: PKPPageRouter->route(Object(Request)) File: /home/jab1/public_html/lib/pkp/classes/core/PKPApplication.inc.php line 178 Function: Dispatcher->dispatch(Object(Request)) File: /home/jab1/public_html/index.php line 64 Function: PKPApplication->execute() Server info: OS: Linux PHP Version: 5.6.40-38+ubuntu18.04.1+deb.sury.org+1 Apache Version: N/A DB Driver: mysql DB server version: 5.7.33-0ubuntu0.16.04.1-log
Financial Factors That Reduce Financial Distress in The Manufacturing Industry | Octaviany | Jurnal Akuntansi dan Bisnis

Financial Factors That Reduce Financial Distress in The Manufacturing Industry

Lidya Octaviany, Martdian Ratnasari

##article.abstract##


This research is motivated by the limited literature that discusses financial factors that can reduce financial distress in manufacturing companies in Indonesia, so it aims to find out what financial factors have an influence in reducing financial distress using the basis of observations of 31 companies over 5 years (2018-2022) with a total of 155 samples. This research uses 1 dependent variable, namely Decrease in Financial Distress (difference in FD per year) and 4 independent variables, namely profitability (ROA), liquidity (CR), leverage (DAR), sales growth (SG). The research method used is multiple linear regression to find out the influence of each independent variable on the existing dependent variable. The results of this research show that profitability and liquidity have a positive effect in reducing financial distress, while leverage and sales growth have no effect in reducing financial distress. Apart from that, this research also proves that there is a decrease in financial distress in manufacturing companies in Indonesia for the 2018-2022 period. Therefore, from the results of existing research, there are several solutions that can be implemented by companies to reduce company financial distress, namely by optimizing the use of resources, reducing short-term debt, and optimizing the use of current assets as well as maintaining sufficient cash levels to ensure the company can meet its short-term obligations.

##article.subject##


financial factors; financial distress; bankruptcy

Full Text:

PDF

References


Arif, M.F. (2022). Analisis perbandingan model pendeteksi financial distress. Zenodo (CERN European Organization for Nuclear Research).

Armenda, D., & Hertina, D. (2023). Analisis financial distress dampak pandemi Covid-19 berdasarkan Model Grover, Springate, dan Zmijewski pada perusahaan tekstil dan garmen. Jurnal Ilmiah Akuntansi dan Keuangan, 5(6), 2835–2844.

Aruni, D.P., & Istikhoroh, S. (2021). Analisis rasio keuangan sebagai alat untuk memprediksi financial distress pada PT. Smartfren Telecom Tbk. Journal of Sustainability Business Research, 2(4), 258-272.

Aviantara, R. (2023). Scoring the financial distress and the financial statement fraud of Garuda Indonesia with «DDCC» as the financial solutions. Journal of Modelling in Management, 18(1), 1–16.

Chan, T.K., & Abdul-Aziz, A.-R. (2017). Financial performance and operating strategies of Malaysian property development companies during the global financial crisis. Journal of Financial Management of Property and Construction, 22(2), 174–191.

Chatha, K.A., & Butt, I. (2015). Themes of study in manufacturing strategy literature. International Journal of Operations & Production Management, 35(4), 604–698.

CNBC Indonesia. (2023). Sritex hampir bangkrut ini penyebab dan jumlah hutangnya. Retrieved from https://www.cnbcindonesia.com/

Farooq, M., Noor, A., Qureshi, S.F., & Bhutta, Z.M. (2021, June 26). Indirect financial distress costs in non-financial firms: Evidence from an emerging market. Pacific Accounting Review, 33(4), 417-434.

Hazami-Ammar, S. & Gafsi, A. (2021). Governance failure and its impact on financial distress. Corporate Governance, 21(7), 1416-1439.

Ho, L. (2024). Liquidity and dynamic leverage: the moderating impacts of leverage deviation and target instability. Journal of Economics and Development, Vol. ahead-of-print No. ahead-of-print.

Jensen, M.C., & Meckling, W.H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.

Kamaluddin, A., Ishak, N., & Mohammed, N.F. (2019). Financial distress prediction through cash flow ratios analysis. International Journal of Financial Research, 10(3), 63-76.

Karim, M.R., Shetu, S.A. and Razia, S. (2021). COVID-19, liquidity and financial health: empirical evidence from South Asian economy. Asian Journal of Economics and Banking, 5 (3), 307-323.

Kasbar, M.S.H., Tsitsianis, N., Triantafylli, A. & Haslam, C. (2023). An empirical evaluation of the impact of agency conflicts on the association between corporate governance and firm financial performance. Journal of Applied Accounting Research, 24(2), 235-259.

Kembery, K., & Rasyid, A. (2023). Faktor-faktor yang mempengaruhi financial distress pada perusahaan manufaktur DI BEI. Jurnal Paradigma Akuntansi, 5(2), 985–991.

Kristanti, F.T. (2019). Financial distress: Teori dan perkembangannya dalam konteks Indonesia (1 ed.). Malang: Inteligensia Media.

Kristyaningsih, P., Hariyani, D.S., & Sudrajat, M.A. (2021). Financial distress terhadap manajemen laba. Business Innovation and Entrepreneurship Journal, 3(3), 151–156.

Li, Y., Li, X., Xiang, E., & Djajadikerta, H.G. (2020). Financial distress, internal control, and earnings management: Evidence from China. Journal of Contemporary Accounting & Economics, 16(3), 1–18.

Mappadang, A., Ilmi, S., Handayani, W.S., & Indrabudiman, A. (2019). Faktor-faktor yang mempengaruhi financial distress pada perusahaan transportasi. Jurnal Riset Manajemen dan Bisnis, 4, 683–696.

Nugroho, R.P., Sutrisno, S.T., & Mardiati, E. (2020). The effect of financial distress and earnings management on tax aggressiveness with corporate governance as the moderating variable. International Journal of Research in Business and Social Science, 9(7), 167–176.

Nursyamsiah & Wahyuni, P.D. (2024). The effect of current ratio, debt to equity ratio and sales growth on financial distress. Journal of Accounting and Finance Management, 5(2), 71–80.

Prasetya, E.R., & Oktavianna, R. (2021, May). Financial distress dipengaruhi oleh sales growth dan intellectual capital. Jurnal Akuntansi Berkelanjutan Indonesia, 4(2), 170–182.

Purba, M.C., & Achmad, T. (2023). Pengaruh kinerja keuangan pemerintah daerah dan indikasi korupsi terhadap kesejahteraan masyarakat. Diponegoro Journal of Accounting, 12(1), 1–10.

Putra, R.D., & Serly, V. (2020). Pengaruh karakteristik komite audit dan ukuran perusahaan terhadap financial distress. Jurnal Eksplorasi Akuntansi, 2(3), 3160–3178.

Rismadhani, F., & Kadarningsih, A. (2020). Rasio keuangan, financial distress dalam prediksi kebangkrutan perusahaan manufaktur. Kompak: Jurnal Ilmiah Komputerisasi Akuntansi, 13(1), 143–151.

Rohmadini, A., Saifi, M., & Darmawan, A. (2018). Pengaruh profitabilitas, likuiditas dan leverage terhadap financial distress (Studi pada perusahaan food & beverage yang terdaftar di Bursa Efek Indonesia periode 2013–2016). Jurnal Administrasi Bisnis, 61(2), 11-19.

Roncagliolo, F.C., & Blas, R.N. (2022). Impact of financial stress in advanced and emerging economies. Journal of Economics Finance and Administrative Science, 27(53), 68–85.

Ryu, S., & Fan, L. (2023). The relationship between financial worries and psychological distress among U.S. adults. Journal of Family and Economic Issues, 44(1), 16–33.

Sapiri, M. (2023). Understanding Financial leverage: The effect of operating leverage and financial leverage on EPS in property and real estate companies on the Indonesia Stock Exchange. Atestasi: Jurnal Ilmiah Akuntansi, 6(1), 53–66.

Sari, N.R., Hasbiyadi, H., & Arif, M.F. (2020). Mendeteksi financial distress dengan model Z-Score Altman (Studi pada perusahaan sektor utama yang terdaftar di Bursa Efek Indonesia). Jurnal Ilmiah Akuntansi dan Humanika, 10(1).

Sari, T.N., & Setyaningsih, P.R. (2022). Analisis financial distress dan financial performance sebelum dan selama pandemi Covid-19 pada perusahaan manufaktur. Jurnal Riset Akuntansi Mercu Buana, 8(1), 53-65.

Sayidah, N., Assagaf, A., & Faiz, Z. (202). Does earning management affect financial distress? Evidence from state-owned enterprises in Indonesia. Cogent Business & Management, 7(1), 1–14.

Susilowati, P.I., & Fadlillah, M.R. (2019). Faktor-faktor yang mempengaruhi financial distress pada perusahaan manufaktur di Indonesia. Jurnal AKSI (Akuntansi dan Sistem Informasi), 4(1), 19–28.

Sutra, F.M., & Mais, R.G. (2019). Faktor-faktor yang mempengaruhi financial distress dengan pendekatan Altman Z-Score pada perusahaan pertambangan yang terdaftar di Bursa Efek Indonesia tahun 2015–2017. Jurnal Akuntansi dan Manajemen, 16(1), 34-72.

Ummah, D.R., & Yuliana, I. (2023). Liquidity relations, current ratio, profitability, gender diversity, company size, and company value: Studies in Indonesia. Jurnal Keuangan dan Perbankan, 27(1), 81–95.




DOI: http://dx.doi.org/10.20961/jab.v24i1.1137

Jurnal Akuntansi dan Bisnis (JAB)
ISSN 1412-0852 (print), 2580-5444 (online)
Published by Accounting Study Program, Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia


Creative Commons License
JAB on http://jab.fe.uns.ac.id/index.php/jab is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License

Visitor Statistic