PENGARUH POLA ARUS KAS, SOLVABILITAS, PROFITABILITAS, UKURAN PERUSAHAAN DAN UMUR PERUSAHAAN TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN MANUFAKTUR DI INDONESIA (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2013-2015)

Abstract

This study aimed to examine the effect of the cash flow patterns, solvency, profitability, firm size and age of firm on the possibility of financial distress in the manufacturing companies listed in Indonesia Stock Exchange in 2013-2015. The period 2013-2015 was used to determine whether the company has financial distress or not. While the population in this study is manufacturing companies listed in Indonesia Stock Exchange in 2011-2014. The data used in this research is secondary data obtained from www.idx.co.id. Samples were obtained by purposive sampling method. After the selection, samples consist of 80 companies comprising of 58 distressed companies and 22 non-distressed companies, with a total of 276 observations. The criteria for companies experiencing financial distress is a company that has negative Earning per Share (EPS) for two consecutive years. This study used logistic regression analysis to examine the possibility of financial distress. The results indicate that the cash flow pattern significantly has a positive influence on financial distress. While the company's profitability and age of firm significantly have a negative effect on financial distress. However, this study showed no evidence of any significant impact on the solvency and firm size on the possibility of financial distress.