Full Lenght Article
Financial Distress Determination Factors In Food And Beverages Companies In Indonesia Stock Exchanges

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Abstract

This research aimed to find out the effect of leverage, liquidity, profitability, activity, and growth firm on the financial distress of Food and Beverages companies which were listed on Indonesia Stock Exchange. While, the research was quantitative. Moreover, the data were secondary which in the form of company’s financial statement. Furthermore, data collection technique used purposive sampling in which the sample was based on criteria given. In line with, there were 78 Food and Beverages companies as sample. Additionally, the data analysis technique used logistic regression analysis with SPSS 23. In addition, the research result concluded leverage which was measured by debt to asset ratio, liquidity which was measured by current ratio and growth firm which was measured by sales growth did not effect the financial distress. On the other hand, profitability which measured by return on asset and activity which measured by total turnover had negative effect on the financial distress of Food and Beverages companies. Keywords: Leverage, liquidity, profitability, activity, growth firm, financial distress.

Declarations

Conflict of Interest Statement

The author (s) declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

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  • Submitted
    1 April 2021
  • Revised
    10 July 2021
  • Published
    4 January 2021