Determination of Financial Distress and Stock Prices: The Effect of Financial Performance and Sales Growth (Financial Management Review Literature)

: Previous research or relevant research is very important in a research or scientific article. Previous research or relevant research serves to strengthen the theory and phenomena of the relationship or influence between variables. This article reviews Stock Price Determination and Financial Distress: Financial Performance Analysis and Sales Growth, A Study of Financial Management Literature. The purpose of writing this article is to build a hypothesis of the influence between variables to be used in further research. The results of this research library are that: 1) Financial Performance has an effect on Financial Distress; 2) Sales Growth has an effect on Financial Distress; 3) Financial Performance has an effect on Stock Price; 4) Sales Growth has an effect on Stock Price; and 5) Financial Distress has an effect on stock prices.


INTRODUCTION
Every student, both Strata 1, Strata 2 and Strata 3, is required to conduct research in the form of theses, theses and dissertations. Likewise for lecturers, researchers and other functional staff who actively conduct research and make scientific articles for publication in scientific journals.
Based on the empirical experience of many young students and lecturers as well as other researchers, it is difficult to find supporting articles in research as previous research or as relevant research. Articles as relevant researchers are needed to strengthen the theory being studied, to see the relationship between variables and build hypotheses, it is also very necessary in the discussion section of research results. This article discusses the effect of Financial Performance and Sales Growth on Financial Distress and its Impact on Stock Prices (A Study of Financial Management Literature.
Based on the background, the problems to be discussed can be formulated in order to build hypotheses for further research, namely: 1. Does Financial Performance affect Financial Distress?.

Stock Prices
According to Heruningsih (2012) shares are one type of ownership securities traded in the capital market. The share price according to Kesuma (2009) is the closing price of the ownership shares of a person or entity in a limited company (Tbk) which are traded in the capital market. The share price is very meaningful for a company because the share price can determine how much the value of a company is and can show the financial performance and success achieved by the company in running its entity (Tandelin, 2010).
A declining stock price will indicate that the performance of the company has not been maximized which has an impact on the lack of investor confidence to invest in the company. When the stock price is high, the company has the opportunity to get additional investment from investors. It can be concluded by investors that the company has good financial performance. The stock price indicator according to DNH Divine (2020) is the closing price.

Financial performance
Financial performance according to (Fahmi, 2013) is an analysis carried out on financial statements using rules that have been regulated in accordance with proper and correct financial implementation. According to Hanafi and Halim (2014) there are 3 main financial statements, namely the Balance Sheet, Profit-Loss Statement and Cash Flow.
Indicators on financial performance variables can use financial statement analysis in financial performance, ratio analysis used in this study are:

1) Current Ratio (CR)
Current ratio is a ratio used to measure the company's ability to meet its short-term obligations that fall immediately CR = Current Asset Short Term Liabilities 2) Debt to Equity (DER) According to Hery (2015:198), the debt-to-equity ratio is a ratio used to measure the proportion of profit to capital DER = Total of Debt Total Capital 3) Total Asset turnover (TATO) According to Hery (2015:221), total asset turnover is a ratio used to measure the effectiveness of the company's total assets in generating sales, or in other words to measure how much sales will be generated from each rupiah of funds embedded in total assets.

Sales Growth
Sales Growth represents a comparison between total net sales for the current year and the previous year (Hosea, Siswantini, & Murtatik, 2020). Sales that are relatively more stable will be found in companies that have sales volumes in large units compared to companies with smaller sales units.
According to Widarjo andSetiawan (2009 in Yudiawati andIndriani, 2016) sales growth is a reflection of the ability of a company in a period. The company can be said to be successful if the company's sales level is high then the company is considered to have succeeded in carrying out its strategy. The indicators used in sales growth can be formulated as follows:

RESEARCH METHOD
The method of writing scientific articles is by using qualitative methods and literature review (Library Research). Assessing theory and the relationship or influence between variables from books and journals both offline in the library and online sourced from Mendeley, Scholar Google and other online media.
In qualitative research, literature review must be used consistently with methodological assumptions. This means that it must be used inductively so that it does not direct the questions posed by the researcher. One of the main reasons for conducting qualitative research is that the research is exploratory, (Ali & Limakrisna, 2013).

DISCUSSION
Based on relevant theoretical studies and previous research, the discussion of this literature review article in the concentration of Financial Management is :

The Effect of Financial Performance on Financial Distress
Financial Performance has an effect on Financial Distress, where the dimensions or indicators of Financial Performance, namely Current Ratio, Debt to Equity, Total Asset Turnover affect the dimensions or indicators of Financial Distress, namely, Interest coverage ratio (ICR) where EBIT is divided by Interest Expense (Sutanto, 2020)) Clause : 1) ICR < 2, it means the company is experiencing financial distress which is symbolized in dummy 1. 2) ICR > 2, it means that the company does not experience financial distress or is included in healthy firms, symbolized by a dummy 0.
To reduce the level of Financial Distress by paying attention to financial performance, where the company can manage the stability of its financial performance. Financial distress occurs because the company is not successful in managing its financial performance starting from the failure to promote the products they produce so that sales decline and result in the company experiencing losses in carrying out its operations (Sutanto, 2020).
Financial performance has an effect on Financial Distress, if financial performance such as the current ratio aims to be able to measure the company's ability to pay obligations or debts that will mature (Herry, 2017), Debt ratio where the company can analyze its skills in fulfilling its obligations (Kasmir, 2012), and the company can also see from sales stability, asset structure, growth rate, tax, lender attitude (Brigham and Houston, 2011), and total asset turn over ratio can show the overall use of company assets in terms of efficiency in generating sales volume (Syamsudin, 2011). 2011) Financial performance has an effect on financial distress, where by looking at the company's financial performance can see the condition of the company the company is in financial distress. This is in line with research conducted by: (Suryani, 2020) , (Edi, 2020), (Jumirin Asyikin, 2020)

Effect of Sales Growth on Financial Distress
Sales Growth has an effect on Financial Distress, where the dimension or indicator of sales growth is this year's sales, and sales of the previous year have an effect on the dimensions or indicators of Financial Distress, namely, Interest coverage ratio (ICR) where EBIT is divided by Interest Expense (Wangsih, 2020).
To reduce the level of Financial Distress by paying attention to sales growth, where positive sales growth illustrates that the market gives a positive response to the products or services provided by the company (Suryani, 2020) Sales growth has an effect on financial distress, the higher the level of sales growth, it will show the company's profit is increasing, with this possibility, the smaller the company is experiencing financial distress problems (Suryani, 2020) Sales growth has an effect on financial distress, where with increased sales growth, the company will have a small chance of experiencing financial distress. This is in line with research conducted by: (Prasetya, 2021), (Suryani, 2020), (Juhaeriah, 2021), Jeanny Gunawan, et al (2020)

The Effect of Financial Performance on Stock Prices
Financial Performance has an effect on stock prices, where the dimensions or indicators of Financial Performance, namely Current Ratio, Debt to Equity, Total Asset Turnover affect the dimensions or indicators of Stock Price, namely Closing Price (Ilahiyah, 2020).
To increase stock prices by paying attention to financial performance, where financial performance is a reflection of the current and future appearance of a company and financial performance is a picture of the results of many individual decisions supported by management. This can lead to strong interactions from buyers and sellers on the Stock Exchange which will affect the demand and supply of the shares themselves (Fahmi, 2013).
Financial performance has an effect on stock prices, if the financial performance of a company has a good financial value, it will be followed by a good stock price value. Meanwhile, the opposite can happen where a bad company's financial value can have an impact on bad stock prices. Assessment of a company's financial performance is very calculated to decide to buy a company's shares (Oktianto, 2017) Financial performance affects stock prices, where the financial performance of a company will affect the dynamics of stock price developments on the Stock Exchange. This is in line with research conducted by: (Mustaqim, 2021), (Jumirin Asyikin, 2020) (Oktianto, 2017)

The Effect of Sales Growth on Stock Prices
Sales Growth has an effect on stock prices, where the dimension or indicator of sales growth is this year's sales, and sales of the previous year have an effect on the dimensions or indicators of stock prices, namely the closing price (Harahap, 2015).
To increase stock prices by paying attention to sales growth, where sales growth is an indicator that the company uses as a prediction in the future. To maintain profit which is an opportunity in the future, it is influenced by the growth rate of a company (Barton, 2013) Sales growth has an effect on stock prices, if sales growth is high it will reflect the company's income increases (Harmono, 2011). Companies that experience sales growth, this is something that is good for and will have a positive impact on investors to invest in the company. The higher sales growth, it will affect the stock price where the higher the demand for company shares and will encourage an increase in the company's stock price (Vireyto and Sulasmiyati, 2017) Sales Growth has an effect on stock prices, where increasing sales growth will encourage an increase in stock prices in the company. This is in line with research conducted by: (Ikayanti, 2022), (Ilahiyah, 2020), (Wati, 2020)

Effect of Financial Distress on Stock Prices
Financial distress affects stock prices, where the dimension or indicator of financial distress, namely Interest coverage ratio (ICR) where EBIT divided by Interest Expense affects the dimension or indicator of stock prices, namely the closing price (Sutanto, 2017).
To predict financial distress that can affect stock prices, where high stock price movements can provide a positive attraction for investors to transact and invest in the company. The performance of a company that is good and does not experience financial distress is a condition to be considered which will affect stock prices (Wiyarni, 2018) Financial distress affects stock prices, if financial distress is unlikely to be experienced by a company whose financial performance can be predicted in advance by investors. With a low bankruptcy rate indicating good company health, it can attract investors to make share purchase transactions so as to increase the company's stock price (Sukmawati, 2014).
Financial distress affects stock prices, where there is a small possibility that financial distress in a company will attract investors to invest and share prices will also increase. This is in line with research conducted by: (Septia, 2021), (J Gunawan, 2020), (Wawo, 2020),

Conceptual Framework
Based on the formulation of the problem, theoretical studies, relevant previous research and discussion of the influence between variables, the framework for thinking in this article is as follows.

Picture 1: Conceptual Framework
Based on the conceptual framework picture above, then: Financial Performance and Sales Growth affect Financial Distress and Stock Prices either directly or indirectly.

CONCLUSIONS AND RECOMMENDATIONS Conclusions
Based on theory, relevant articles and discussions, hypotheses can be formulated for further research: 1. Financial Performance has an effect on Financial Distress. 2. Sales Growth has an effect on Financial Distress. 3. Financial Performance has an effect on Stock Prices. 4. Sales Growth has an effect on stock prices. 5. Financial Distress affects stock prices.

Recommendations
Based on the conclusions above, the suggestion in this article is that there are many other factors that affect Financial Distress and Stock Prices, apart from Stock Prices and Financial Distress at all types and levels of organizations or companies, therefore further studies are needed. to look for other factors that can affect Financial and Stock Price Distress in addition to those examined in this article such as: Earning per share, Company Size and Institutional Ownership.