This study aims to investigate the determinants of financial distress (i.e., financial indicators, firm size, institutional and managerial ownership). The sample of this study includes 250 firms registered in Indonesia Stock Exchange (IDX) of the period 2014 – 2017. By using logistic regression analysis, the results show that 1) leverage has a positive effect on financial distress; 2) profitability, operating capacity, and firm size have a negative effect on financial distress; and 3) liquidity, sales growth, and institutional and managerial ownership have no effect on financial distress.
financial distress, liquidity, leverage, profitability, operating capacity, sales growth, firm size, institutional ownership, and managerial ownership
Cite this paper
Yeye Susilowati, Elen Puspitasari, Basukiyanto, Nur Aprilita Fauziyah. (2020) The Determinants of Financial Distress: An Empirical Investigation of Indonesian Firms. International Journal of Environmental Science, 5, 140-150
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