FINANCIAL DISTRESS DETERMINANTS IN IDX MANUFACTURING FIRMS (2021-2023): THE MODERATING ROLE OF FIRM SIZE

Abstract

Indonesia is considered by several parties to have experienced the phenomenon of early deindustrialization. Many companies are experiencing financial disruption and closing down, but there is also new investment in the manufacturing industry. Financial distress is defined as a stage of financial decline that occurs before bankruptcy or liquidation. This research takes into account fundamental factors that are thought to have a significant influence on the occurrence of financial distress. This study also uses one fixed or dependent variable, namely Financial Distress, Four independent or free variables, namely Leverage, Audit Committee, Return On Asset, Current Ratio. 1 Moderation Variable, namely the Company Size variable. The research data used in this study are secondary data obtained from audited financial reports and annual reports of manufacturing sector companies. The research and testing methods used are the Purposive sampling method, Classical assumption testing, Multiple regression analysis test and Partial test. The results of the t-test show that only the leverage variable has a significant negative influence on financial distress. Other variables in the research model do not have a significant influence.