2020•Jurnal Akuntansi dan KeuanganOpen access

Which Retail Firm Characteristics Impact On Financial Distress?

Elok Heniwati, Erlina Essen

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Abstract

This study is to examine whether liquidity, profitability, leverage, sales growth, operating capacity, and size have influenced on financial distress by using retail industry that listed in the Indonesia Capital Market. Sample determination basing on purposive sampling results 19 companies with complete data over the observation period (2014-2018). Data was manually collected from the website, www.idx.com. By using logistic regression, the findings show that profitability and leverage have significant influenced on financial distress. Moreover, predictor liquidity, sales growth, operating capacityand firm’s size have no relationship with financial distress.

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This study is to examine whether liquidity, profitability, leverage, sales growth, operating capacity, and size have influenced on financial distress by using retail industry that listed in the Indonesia Capital Market. Sample determination basing on purposive sampling results 19 companies with complete data over the observation period (2014-2018). Data was manually collected from the website, www.idx.com. By using logistic regression, the findings show that profitability and leverage have significant influenced on financial distress. Moreover, predictor liquidity, sales growth, operating capacityand firm’s size have no relationship with financial distress.

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Available abstract

This study is to examine whether liquidity, profitability, leverage, sales growth, operating capacity, and size have influenced on financial distress by using retail industry that listed in the Indonesia Capital Market. Sample determination basing on purposive sampling results 19 companies with complete data over the observation period (2014-2018). Data was manually collected from the website, www.idx.com. By using logistic regression, the findings show that profitability and leverage have significant influenced on financial distress. Moreover, predictor liquidity, sales growth, operating capacityand firm’s size have no relationship with financial distress.

Key concepts: Profitability index, Leverage (statistics), Market liquidity, Nonprobability sampling, Financial distress, Business, Logistic regression, Financial ratio

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