THE IMPACT OF PROFITABILITY, LIQUIDITY, AND GOOD CORPORATE GOVERNANCE ON FINANCIAL DISTRESS WITH CAPITAL STRUCTURE AS A MODERATION VARIABLE
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Aug 28, 2023
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Abstract
Financial distress is a situation when a company’s operating cash flows are insufficient to meet its obligations and the company is required to take corrective action. The aim of this study is to know the impact of profitability, liquidity, GCG on financial distress with capital structure as a variable of moderation. The population in this study amounted to 82 companies in the property and real estate sector listed in the EIB period 2017-2021. The sampling technique used is purposive sampler and produces as many as 25 companies. The results of the research showed that profitability has a significant positive impact on financial distress, liquidity has a significant positive effect on financial disaster, GCG has a substantial negative impact on finance distress. Capital structure as a variable of moderation can’t strengthen the relationship of profitability to financial distress, capital structure can weaken the relationship between liquidity to financial crisis, and capital structure cannot strengthen relationship between GCG and financial crisis.
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WIJAYANTI, Eka; FITRIYAH, Fitriyah.
THE IMPACT OF PROFITABILITY, LIQUIDITY, AND GOOD CORPORATE GOVERNANCE ON FINANCIAL DISTRESS WITH CAPITAL STRUCTURE AS A MODERATION VARIABLE.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 9, n. 1, p. 283-288, aug. 2023.
ISSN 2541-3333.
Available at: <http://conferences.uin-malang.ac.id/index.php/iconies/article/view/2353>. Date accessed: 02 may 2024.
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References
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Fina Rifiana, Aziz Fathoni, Dheasey Amboningtyas. 2018. “The Effect Of Managerial Ownership, The Board Of Commissioners Of Financial Distress With The Value Of The Company As An Intervening Variabel (Case Study of Food and Beverages Companies Registered on IDX in 2014-2018)” (14): 63–65. doi:10.15900/j.cnki.zylf1995.2018.02.001.
Hanafi, Mamduh. 2016. Manajemen Keuangan Edisi 2. Yogyakarta: BPFE.
Hayat, Mustansar, Khalil Jebran, Yan Yu, and Man Wang. 2018. “Impact of Managerial and Institutional Ownership on Capital Structure: A Comparison Between China & USA.” European Journal of Business and Management Www.iiste.org ISSN 10 (24): 69–80. https://www.researchgate.net/publication/328990396.
Ikpesu, Fredrick, and Osazemen C. Eboiyehi. 2018. “Capital Structure and Corporate Financial Distress of Manufacturing Firms in Nigeria.” Journal of Accounting and Taxation 10 (7): 78–84. doi:10.5897/jat2018.0309.
Kazemian, Soheil, Noor Azura, Ahmad Shauri, Zuraidah Mohd Sanusi, Amrizah Kamaluddin, and Shuhaida Mohamed Shuhidan. 2017. “Monitoring Mechanisms and Financial Distress of Public Listed Companies in Malaysia” 10: 92–109. doi:10.14254/2071-8330.2017/10-1/6.
Khafid, Muhammad, Tusyanah Tusyanah, and Tejo Suryanto. 2019. “Analyzing the Determinants of Financial Distress in Indonesian Mining Companies.” International Journal of Economics and Business Administration 7 (4): 353–368. doi:10.35808/ijeba/349.
Kusmayadi, D., Rudiana, D., Badruzaman, J. 2015. Good Corporate Governance. Tasikmalaya: LPPM Universitas Siliwangi.
Nanda, Desty Widya, and Endang Dwi Retnani. 2017. “Kepemilikan Institusional Dan Resiko Bisnis Terhadap Struktur Modal Desty Widya Nanda Sekolah Tinggi Ilmu Ekonomi Indonesia ( STIESIA ) Surabaya Perusahaan Semakin Tajam . Fungsi Keuangan Merupakan Fungsi Penting Dalam Perusahaan . ( Wimelda Dan Marlinah” 6 (4).
Oktasari, Dian Primanita. 2020. “The Effect of Liquidity, Leverage and Firm Size of Financial Distress.” East African Scholars Multidisciplinary Bulletin 3 (9): 293–297. doi:10.36349/easmb.2020.v03i09.002.
Pramudena, Sri Marti. 2017. “Impact of Good Corporate Governance on Financial Distress in the Consumer Goods Sector Company.” GATR Journal of Finance and Banking Review 2 (4): 46–55. doi:10.35609/jfbr.2017.2.4(6).
Reschiwati, Fran Sayekti, Rr Dimas Veronica Priharti, and Hafidz Muhammad Arsyad. 2021. “The Model of Financial Distress in the Pharmaceutical Industry.” International Journal of Disaster Recovery and Business Countinuity 12 (1): 449–461.
Sandu Siyoto, and M. Ali Sodik. 2015. “Dasar Metodologi Penelitian Dr. Sandu Siyoto, SKM, M.Kes M. Ali Sodik, M.A. 1.” Dasar Metodologi Penelitian: 1–109.
Sudana, I Made. 2015. Teori Dan Praktik: Manajemen Keuangan Perusahaan. Jakarta: Erlangga.
Taufiq, Andre Kusumo, and Basuki Hadiprajitno Paulus. 2017. “Pengaruh Good Corporate Governance Terhadap Struktur Modal (Studi Empiris Pada Perusahaan Pertambangan Yang Listing Di BEI Tahun 2011-2014.” Diponegoro Journal Of Accounting 6 (2007): 1–11.
Utari, Dewi; Purwanti, Ari; Prawironegoro, Darsono. 2014. Manajemen Keuangan: Kajian Praktik Dan Teori Dalam Mengelola Keuangan Organisasi Perusahaan. Jakarta: Mitra Wacana Media