Analysis of the Factors that Affect Financial Distress in Transportation Sector Companies Listed on the IDX for the Period 2018 – 2020

Tina Novianti Sitanggang, Ayu Stevani Sinaga, Tuti Ritonga, Desy Pratiwi, Lismawati Waruwu

Abstract


The purpose of this research is to find out what factors influence the occurrence of bad financial conditions (Financial Distress) in a company. Transportation sector companies are the population in this study, with a sample of 33 companies with a three-year study period. The technique used in determining the sample is purposive sampling technique. The independent variables in this study: ROA, Current Ratio, Debt Ratio and Company Size. The dependent variable in this study: Financial Distress as measured using the modelZmijewski. The results showed thatROA partially has a significant negative effect on Financial Distress, Current Ratio partially has no significant effect on Financial Distress, Debt Ratio partially has a significant positive effect on Financial Distress, Company Size partially does not have a significant effect on Financial Distress and ROA, Current Ratio, Debt Ratio and Company Size simultaneously affect Financial Distress.


Keywords


Return on assets (ROA); current ratio; debt ratio; company size (size); financial distress.

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DOI: https://doi.org/10.33258/birci.v5i1.3830

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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.