Pengaruh Rasio Keuangan terhadap Financial Distress dengan Firm Size sebagai Variabel Moderasi

Abstract

Financial distress is a state of financial difficulty faced by a company before bankruptcy or liquidation. This study aims to obtain empirical evidence and analyze the effect of financial ratios on financial distress with firm size as a moderating variable. The financial ratios include financial leverage proxied Debt Equity Ratio, profitability ratios proxied by Return on Assets and Firm Size proxied by the natural logarithm of Total Sales. The population in this study is infrastructures sector companies listed on the Indonesia Stock Exchange in 2018-2021. The total sample used in this study were 177 based on established criteria. Data analysis was performed Moderated Regression Analysis. The results of the study show that Debt Equity Ratio has a positive and significant influence on financial distress of infrastructure companies listed on IDX from 2018 to 2021, and then Return on Asset has a negative and significant influence on financial distress of leverage companies listed on IDX from 2018 to 2021, and the firm size can moderated effect Debt Equity Ratio and Return On Asset infrastructure on financial fistress. Further research is expected to expand the parameters and scope only at this time or expand research not on the infrastructure sector but also add other sectors in several ASEAN countries. In addition, it is necessary to add other financial ratio variables such as activity and liquidity ratios