The Effect of Liquidity, Activity, Profitability, and Leverage on The Financial Distress of Properties And Real Estate Companies in 2019-2022
DOI:
https://doi.org/10.31933/dijms.v5i3.2159Keywords:
Financial distress, financial ratios, liquidity, activity, profitability, leverage.Abstract
The purpose of this study is to examine how financial distress is affected by liquidity, activity, profitability, and leverage in real estate and property companies that are listed on the Indonesia Stock Exchange between 2019 and 2022. This study is inspired by the recent financial distress of major industry participants such as FORZ, COWL, MYRX, and ARMY. The approach in this study is quantitative, and the data was gathered using a documentation technique with a sample of 33 companies. This study is conducted with panel data regression using Eviews 12. The results of this study reveal that liquidity, activity, profitability, and leverage simultaneously have a significant impact on financial distress. Liquidity and profitability partially exhibit negative and significant effects on financial distress, while leverage has a positive and significant impact on financial distress. However, activity alone does not significantly affect financial distress. In addition, the findings affirm that the risk of financial distress can be influenced by financial factors such as liquidity, activity, profitability, and leverage.
References
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Pawitri, A. I., & Alteza, M. (2020). Analisis Pengaruh Likuiditas, Profitabilitas, Leverage, Operating Capacity, Dan Biaya Agensi Manajerial Terhadap Financial Distress. Jurnal Fokus Manajemen Bisnis, 10(2), 149. https://doi.org/10.12928/fokus.v10i2.2443
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Sasongko, H., Fajar Ilmiyono, A., & Tiaranti, A. (2021). Financial Ratios and Financial Distress in Retail Trade Sector Companies. JIAFE (Jurnal Ilmiah Akuntansi Fakultas Ekonomi), 07(01), 63–72. https://doi.org/10.34204/jiafe.v7i1.3380
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Septarini, D. F. (2022). Prediction of Financial Distress on Properties and Real Estate in Indonesia. International Journal of Current Science Research and Review, 05(07), 2765–2774. https://doi.org/10.47191/ijcsrr/v5-i7-62
Setyawati, A., Fidhyanti, F. S., Sugangga, A., & Rahman, I. (2023). Effects Of Financial Ratios On Financial Distress In Property And Real Estate Companies. 1(3), 13–30.
Sutra, F. M., & Mais, R. G. (2019). Faktor-Faktor yang Mempengaruhi Financial Distress dengan Pendekatan Altman Z-Score pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia Tahun 2015-2017. Jurnal Akuntansi Dan Manajemen, 16(01), 34–72. https://doi.org/10.36406/jam.v16i01.267
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Utami, I. W., & Dewi Kartika, T. P. (2019). Determinants of Financial Distress in Property and Real Estate Companies. The Indonesian Accounting Review, 9(1), 109. https://doi.org/10.14414/tiar.v9i1.1705
Zulfikar, R. (2018). Estimation Model And Selection Method Of Panel Data Regression: An Overview Of Common Effect, Fixed Effect, And Random Effect Model. Jurnal Ilmiah Bidang Akuntansi, 1–18.
Arini, S. A., Samrotun, Y. C., & Masitoh, E. (2021). Determinant of Financial Ratio Analysis to Financial Distress. Jambura Science of Management, 3(1), 26–35. https://doi.org/10.37479/jsm.v3i1.6962
Astuti, R., Budi Rustandi Kartawinata, E. N., Tuhuteru, J., Mulatsih, L. S., Muliyani, A., Siska, A. J., Erziaty, R., Wicaksono, G., Nurmatias, Nugroho, H., Sugiarto, D., & Indriani., J. D. (2022). Manajemen Keuangan Perusahaan. WIDINA BHAKTI PERSADA BANDUNG.
Atika, DARMINTO, & HANDAYANI, S. R. (2016). PENGARUH BEBERAPA RASIO KEUANGAN TERHADAP PREDIKSI KONDISI FINANCIAL DISTRESS. 1–23.
Azis, Y. M. (2021). Financial Ratio Analysis in Predicting Financial Distress of Food and Beverage Companies With Logistic Regression. Sinergi?: Jurnal Ilmiah Ilmu Manajemen, 11(2), 43–49. https://doi.org/10.25139/sng.v11i2.4157
Bank Indonesia. (n.d.). https://www.bi.go.id/id/default.aspx
Bernardin, D. E. Y., & Indriani, G. (2020). Financial Distress: Leverage, Likuiditas, Aktivitas Dan Ukuran Perusahan Dimoderasi Profitabilitas. Jurnal Financia, 1(1), 38–49. http://ejurnal.ars.ac.id/index.php/financia/article/view/294
Bukhori, I., Kusumawati, R., & Meilani, M. (2022). Prediction of Financial Distress in Manufacturing Companies: Evidence from Indonesia. Journal of Accounting and Investment, 23(3), 588–605. https://doi.org/10.18196/jai.v23i3.15217
Damayanti, R., & Sucipto, A. (2022). The Effect of Profitability, Liquidity, and Leverage on Firm Value With Dividend Policy as Intervening Variable. International Journal of Economics, Business and Accounting Research (IJEBAR), 6(2), 863.
Dwi Urip Wardoyo, Rafiansyah Rahmadani, & Putut Tri Hanggoro. (2021). Good Corporate Governance Dalam Perspektif Teori Keagenan. EKOMA?: Jurnal Ekonomi, Manajemen, Akuntansi, 1(1), 39–43. https://doi.org/10.56799/ekoma.v1i1.25
Dwiantari, R. A., Gede, L., & Artini, S. (2021). The Effect of Liquidity, Leverage, and Profitability on Financial Distress (Case Study of Property and Real Estate Companies on the IDX 2017-2019). American Journal of Humanities and Social Sciences Research, 5, 367–373. www.ajhssr.com
Hidayat, I., & Dewi, F. O. S. (2022). Effect of Liquidity, Leverage, and Working Capital Turn on Profitability. APTISI Transactions on Management (ATM), 7(1), 60–68. https://doi.org/10.33050/atm.v7i1.1832
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Kisman, Z., & Krisandi, D. (2019). How to Predict Financial Distress in the Wholesale Sector: Lesson from Indonesian Stock Exchange. Journal of Economics and Business, 2(3), 569–585. https://doi.org/10.31014/aior.1992.02.03.109
Luayyi, S. (2012). Teori Keagenan Dan Manajemen Laba Dari Sudut Pandang Etika Manajer. EL MUHASABA: Jurnal Akuntansi (e-Journal), 1(2), 199–216. https://doi.org/10.18860/em.v1i2.1871
Lumbantobing, R. (2020). The Effect of Financial Ratios on the Possibility of Financial Distress in Selected Manufacturing Companies Which Listed in Indonesia Stock Exchange. 132(AICMaR 2019), 60–63. https://doi.org/10.2991/aebmr.k.200331.014
Masdupi, E., Tasman, A., & Davista, A. (2018). The Influence of Liquidity, Leverage and Profitability on Financial Distress of Listed Manufacturing Companies in Indonesia. 57(Piceeba), 223–228. https://doi.org/10.2991/piceeba-18.2018.51
Maulida, I. S., Moehaditoyo, S. H., & Nugroho, M. (2018). Analisis Rasio Keuangan Untuk Memprediksi Financial Distress Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia 2014-2016. Jurnal Ilmiah Administrasi Bisnis Dan Inovasi, 2(1), 180–194. https://doi.org/10.25139/jai.v2i1.1149
Max L. Heine. (2000). PREDICTING FINANCIAL DISTRESS OF COMPANIES: REVISITING THE Z-SCORE AND ZETA® MODELS. The Federal Lands Revisited, September 1968, 1–302. https://doi.org/10.4324/9781315064277
Munawir, S. (2010). Akuntan Analisa Laporan Keuangan. Liberty Yogyakarta.
Pawitri, A. I., & Alteza, M. (2020). Analisis Pengaruh Likuiditas, Profitabilitas, Leverage, Operating Capacity, Dan Biaya Agensi Manajerial Terhadap Financial Distress. Jurnal Fokus Manajemen Bisnis, 10(2), 149. https://doi.org/10.12928/fokus.v10i2.2443
Pradnyanita Sukmayanti, N. W., & Triaryati, N. (2018). Pengaruh Struktur Modal, Likuiditas Dan Ukuran Perusahaan Terhadap Profitabilitas Pada Perusahaan Property Dan Real Estate. E-Jurnal Manajemen Universitas Udayana, 8(1), 172. https://doi.org/10.24843/ejmunud.2019.v08.i01.p07
Purwanti, D. (2021). Determinasi Kinerja Keuangan Perusahaan?: Analisis Likuiditas, Leverage Dan Ukuran Perusahaan (Literature Review Manajemen Keuangan). Jurnal Ilmu Manajemen Terapan, 2(5), 692–698. https://doi.org/10.31933/jimt.v2i5.593
Restianti T, & Agustina L. (2018). Accounting Analysis Journal The Effect of Financial Ratios on Financial Distress Conditions in Sub Industrial Sector Company. Accounting Analysis Journal, 7(1), 25–33. https://doi.org/10.15294/aaj.v5i3.18996
Sasongko, H., Fajar Ilmiyono, A., & Tiaranti, A. (2021). Financial Ratios and Financial Distress in Retail Trade Sector Companies. JIAFE (Jurnal Ilmiah Akuntansi Fakultas Ekonomi), 07(01), 63–72. https://doi.org/10.34204/jiafe.v7i1.3380
Sehgal, S., Mishra, R. K., Deisting, F., & Vashisht, R. (2021). On the determinants and prediction of corporate financial distress in India. Managerial Finance, 47(10), 1428–1447. https://doi.org/10.1108/MF-06-2020-0332
Septarini, D. F. (2022). Prediction of Financial Distress on Properties and Real Estate in Indonesia. International Journal of Current Science Research and Review, 05(07), 2765–2774. https://doi.org/10.47191/ijcsrr/v5-i7-62
Setyawati, A., Fidhyanti, F. S., Sugangga, A., & Rahman, I. (2023). Effects Of Financial Ratios On Financial Distress In Property And Real Estate Companies. 1(3), 13–30.
Sutra, F. M., & Mais, R. G. (2019). Faktor-Faktor yang Mempengaruhi Financial Distress dengan Pendekatan Altman Z-Score pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia Tahun 2015-2017. Jurnal Akuntansi Dan Manajemen, 16(01), 34–72. https://doi.org/10.36406/jam.v16i01.267
Umum, D. J. B. P. (2022). Buku Pengadilan Niaga di Indonesia. Mahkamah Agung Republik Indonesia. https://badilum.mahkamahagung.go.id/publik/publikasi/3924-buku-pengadilan-niaga-di-indonesia.html
Utami, I. W., & Dewi Kartika, T. P. (2019). Determinants of Financial Distress in Property and Real Estate Companies. The Indonesian Accounting Review, 9(1), 109. https://doi.org/10.14414/tiar.v9i1.1705
Zulfikar, R. (2018). Estimation Model And Selection Method Of Panel Data Regression: An Overview Of Common Effect, Fixed Effect, And Random Effect Model. Jurnal Ilmiah Bidang Akuntansi, 1–18.
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Published
2024-01-07
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Jessie, J., & Tannia, T. (2024). The Effect of Liquidity, Activity, Profitability, and Leverage on The Financial Distress of Properties And Real Estate Companies in 2019-2022. Dinasti International Journal of Management Science, 5(3), 420–429. https://doi.org/10.31933/dijms.v5i3.2159
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