The Effect of Managerial Ownership, Company Size, Liquidity, and Profitability on Financial Distress

Selly Mevania; Sri  Wahyuni; Edi Joko  Setyadi; Nur Isna  Inayati

doi:10.55927/jambak.v1i2.1796

Authors

Selly Mevania Muhammadiyah University Purwokerto
Sri Wahyuni Muhammadiyah University Purwokerto
Edi Joko Setyadi Muhammadiyah University Purwokerto
Nur Isna Inayati Muhammadiyah University Purwokerto

DOI:

https://doi.org/10.55927/jambak.v1i2.1796

Keywords:

Financial Distress, Managerial Ownership, Firm Size, Liquidity, Profitability

Abstract

The Covid-19 pandemic requires companies to improve their performance, so as not to experience financial distress. So the purpose of this study is to find empirical evidence of factors that influence financial distress during the Covid-19 pandemic, including managerial ownership, company size, liquidity, and profitability. The population in this study are basic materials companies that are listed on the IDX in 2019-2021. The sampling method in this study used purposive sampling, and 57 samples were obtained. The data analysis technique used is multiple regression analysis. The results of this study prove that the managerial ownership variable does not affect financial distress, that company size has a negative effect on financial distress, and that the liquidity variable, profitability has a positive effect on financial distress. This research makes a scientific contribution to the field of financial accounting in the form of insight into the factors that influence financial distress during a pandemic.

Downloads

Download data is not yet available.

References

alexandra, C., Lionardi, M., William, W., Jennifer, S., & Meiden, CM (2022). Literature Study: The Effect of Good Corporate Governance Factors on Financial Distress. Owners, 6 (1), 111 122. https://Doi.Org/10.33395/Owner.V6i1.536

Anggriani, P., & Rahim, R. (2021). The Effect of Corporate Governance Mechanisms and Political Connection on Financial Distress. Journal of Management Science Research, 6 (1), 64–77.

Ardini, DP & L. (2020). The Effect of Financial Performance, Sales Growth and Company Size on Financial Distress. Journal of Accounting Science and Research, 9 (6), 1–18.

Astuti, AW (2020). The Effects of Profitability, Liquidity, Leverage, and Managerial Ownership on Financial Distress (Empirical Study of Property and Real Estate Companies Listed on the Indonesian Stock Exchange for the 2015-2019 Period). Journal of Economics and Business, 1–72.

Atika, GA, Jumaidi, & Kholis, A. (2020). The Effect of Liquidity and Company Size on Financial Distress. Proceedings of the Webinar of the Faculty of Economics, State University of Medan, 976 - 623 - 94335 - 0 – 5, 86–101. Http://Repository.Unsada.Ac.Id/Cgi/Oai2

Christine, D., Wijaya, J., Chandra, K., Pratiwi, M., Lubis, MS, & Nasution, IA (2019). The Effect of Profitability, Leverage, Total Cash Flow, and Company Size on Financial Distress in Property and Real Estate Companies on the Indonesia Stock Exchange in 2014-2017. Jesya (Journal of Economics & Sharia Economics), 2 (2), 340 350.Https://Doi.Org/10.36778/Jesya.V2i2.102

Dewi, AS, Arianto, F., Rahim, R., & Winanda, J. (2022). The Influence of Cash Flow, Profitability, and Leverage on Financial Distress During the Pandemic Period in Manufacturing Companies Registered in Bei. Owners, 6 (3), 2814–2825. https://Doi.Org/10.33395/Owner.V6i3.968

Erayanti, R. (2019). The Influence of Liquidity, Profitability, and Leverage on Financial Distress Prediction. Journal of Accounting & Taxation Research (Jrap), 6 (01), 38–51. https://Doi.Org/10.35838/Jrap.V6i01.393

Feenie, A., & Dillak, V. (2021). Effect of Liquidity, Operating Cash Flow, Institutional Ownership, and Managerial Ownership on Financial Distress. Scientific Journal of Accounting and Finance, 04 (01), 27–39. Https://Journal.Ikopin.Ac.Id/Index.Php/Fairvalue/Article/View/553/422

Ghozali, I. (2018). Multivariate Analysis Application With IBM Spss 25 9th Edition Program. Http://Slims.Umn.Ac.Id//Lib/Phpthumb/Phpthumb.Php?Src=../../Images/Docs/Application_Analisis_Multivariete_With_Program_Ibm_Spss_23__E.Jpg.Jpg

Hakim, MZ, Abbas, DS, & Nasution, AW (2020). The Influence of Profitability, Liquidity, Leverage, Managerial Ownership, and Institutional Ownership on Financial Distress (Empirical Study of Property & Real Estate Sector Companies Listed in BEI 2016-2018 Period). Competitive Journal of Accounting and Finance, 4 (1), 94. Https://Doi.Org/10.31000/C.V4i1.2383

Jensen, M., & Meckling, W. (1976). Theory Of The Firm: Managerial Behavior, Agency Costs, And Ownership Structure. The Economic Nature Of The Firm: A Reader, Third Edition, 283 303. Https://Doi.Org/10.1017/Cbo9780511817410.023

Jin, V. And TF (2020). Financial Distress: Financial Ratios and Ownership Structure in Non-Financial Companies. 22 (2), 347–359.

Juliana Amelia, A. (2022). Comparative Analysis of Financial Distress at Pt. Lotte Chemical Titan Tbk And Pt . Berlina Tbk Using the Altman Z-Score Method . 5 (2), 509–518.

Kontan. Co. Id. (2020). Down 43.53% Throughout 2020, Here's the Performance of Issuers in the Basic Industry Sector. Https://Amp.Kontan.Co.Id/News/Turun-4353-Sepanjang-2020-Begini-Kinerja-Tujuh-Emiten-Sector-Industrial-Dasar

Kurniaty, YD, Sissah, S., & Anita, E. (2022). The Effect of Profitability, Liquidity and Leverage on Financial Distress in Food and Beverage Companies (Jakarta … . Http://Repository.Uinjambi.Ac.Id/Id/Eprint/11245%0ahttp://Repository.Uinjambi.Ac.Id/11245/ 1/Thesis of Yulvina Dwi Kurniaty - Repository.Pdf

Luke Suciyati Amna, A., & Khairudinherry Goenawan Soedarsa, HKP (2022). Effect of Profitability, Leverage, and Liquidity on Financial Distress. Fair Value: Scientific Journal of Accounting and Finance, 4 (9), 4013–4019. https://Doi.Org/10.32670/Fairvalue.V4i9.1583

Maimunah, CA & M. (2020). The Influence of Profitability, Liquidity, and Leverage in Predicting Financial Distress. Matua Journal, 2 (4), 259–278.

Maulana, J., & Suhartati, S. (2022). The Influence of Return On Assets (Roa) and Company Size on Financial Distress in Chemical Sub Sector Companies Listed on the Indonesia Stock Exchange. Land Journal, 3 (1), 102–113. Https://Doi.Org/10.47491/Landjournal.V3i1.1764

Nilasari, I. (2021). The Influence of Corporate Governance, Financial Indicators, and Company Size on Financial Distress . 5 (2), 61–68.

Nurhayati, D., Dewi, RR, & Fajri, RN (2021). The Effect of Financial Ratios on Financial Distress in the Food and Beverage Industry on the Indonesia Stock Exchange for the 2017-2019 period. Economics: Journal Of Economics And Business, 5 (1), 59. Https://Doi.Org/10.33087/Ekonomis.V5i1.197

Nurmada, AE, Sukarmanto, E., & Fadilah, S. (2018). Effects of Managerial Ownership and Financial Distress. 7 (1), 42–55.

Okrisnesia, M., Supheni, I., & Suroso, B. (2021). The Effect of Profitability, Liquidity, and Sales Growth on Financial Distress During the Covid-19 Pandemic in Food and Beverages Companies Listed on the Indonesia Stock Exchange. National Seminar on Management, Economics, and Accounting, 6 (1), 1466 1474. Https://Proceeding.Unpkediri.Ac.Id/Index.Php/Senmea/Article/View/1188

Putra, MD, & , Muhammad Muslih, SE, MM (1967). The Influence of Institutional Ownership, Managerial Ownership, Independent Board of Commissioners, and Audit Committee on Financial Distress. Angewandte Chemie International Edition, 6(11), 951–952. , 6 (2), 5–48.

Putri, N., & Mulyani, E. (2019). Effect of Debt Ratio, Profit Margin, and Company Size on Financial Distress. Journal of Exploratory Accounting, 1 (4), 1968–1983. https://Doi.Org/10.24036/Jea.V1i4.189

Putri, RD (2019). Analysis of the Effect of Sales Growth and Managerial Ownership on Financial Distress Conditions in Manufacturing Companies in Indonesia. Jusie (Journal of Social and Economic Sciences), 4 (01), 54–63. Https://Doi.Org/10.36665/Jusie.V4i01.189

Rachmawati, L., & Retnani, ED (2020). The Influence of Financial Performance and Managerial Ownership on Financial Distress. Journal of Accounting Science and Research, 9 (3), 1–17.

Raden Achmad Fajri Syaizamari and Dra. Wiwik Hidajah Ekowati, M.Sc., Ak., C. (2019). The Role of Financial Ratios on the Financial Distress Conditions of Manufacturing Companies on the Indonesia Stock Exchange (IDX).

Rahma, A. (2020). Analysis of the Influence of Profitability, Leverage, and Liquidity on Financial Distress. Jabi (Indonesian Sustainable Accounting Journal), 3 (3), 253. Https://Doi.Org/10.32493/Jabi.V3i3.Y2020.P253-266

Ratna, I., & Marwati, M. (2018). Analysis of Factors Influencing Financial Distress Conditions in Companies Delisted from the Jakarta Islamic Index in 2012-2016. Journal of Tabarru': Islamic Banking And Finance, 1 (1), 51–62. Https://Doi.Org/10.25299/Jtb.2018.Vol1(1).2044

Rika Andriyani, Ratna Wijayanti Daniar Paramita, MT (2018). Analysis of Liquidity, Profitability, and Solvency Ratios to Predict Financial Distress Conditions in Manufacturing Companies in Bei. Journal of Accounting Research, 1 (1), 68–77.

Salim, SN, & Dillak, VJ (2021). Effect of Firm Size, Managerial Agency Costs, Capital Structure and Gender Diversity on Financial Distress. Mea Scientific Journal (Management, Economics, And Accounting), 5 (3), 182–198. Https://Drive.Google.Com/File/D/1xra_Rgguw2kiecvk93ofhsimrjrkfktj/ View

Savitri, NNA, & Ariestianti, R. & W. (2022). The Effect of Liquidity, Sales Growth, and Company Size on Financial Distress with Profitability as a Moderating Variable. Journal of Management Science and Research, 1–22.

Setyowati, W., & Sari, NRN (2019). The Influence of Liquidity, Operating Capacity, Company Size and Sales Growth on Financial Distress (Study of Manufacturing Companies Registered on the Bei in 2016-2017). Magisma: Scientific Journal of Economics and Business, 7 (2), 135–146. Http://Jurnal.Stiebankbpdjateng.Ac.Id/Jurnal/Index.Php/Magisma/Article/View/58

Sri Wahyuni, Anita Dewi Tursinawati, Novi Dirgantari, IH (2022). Determinant Factors Analysis Of Company Value : ( Empirical Study On Health Industry Sector During The Covid 19 Pandemic ) . 24 (4), 36–42. Https://Doi.Org/10.9790/487x-2404013642

Suryanto, T. (2017). The Influence of Leverage, Liquidity, and Managerial Ownership on Financial Distress with Profitability as a Moderating Variable. Unnes, 85.

Susanti, R., & Wahyuni, W. (2022). The Effect of Profitability Ratios, Liquidity, Solvency, Institutional Ownership Structure, and Managerial Ownership Structure, on Financial Difficulties (Using the Altman Z-Score Model) (Studies in Manufacturing Companies Listed on the Stock Exchange. Jesya (Journal of Economics & Islamic Economics), 5 ( 1), 355–364. Https://Doi.Org/10.36778/Jesya.V5i1.582

Widhiadnyana, IK, & Dwi Ratnadi, NM (2019). The Impact Of Managerial Ownership, Institutional Ownership, Proportion Of Independent Commissioner, And Intellectual Capital On Financial Distress. Journal Of Economics, Business & Accountancy Venture, 21 (3), 351. Https://Doi.Org/10.14414/Jebav.V21i3.1233