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Prediction Financial Distress for Companies in the Trade Retail Industry
Imron HR (a*), Ulfa Ramandha Putri (b)

Departemen Manajemen
Sekolah Tinggi Ilmu Ekonomi Indonesia
Jakarta, Indonesia
imronhr[at]gmail.com


Abstract

The research objective is to predict the financial distress of companies in the trade retail industry sector which is estimated to be the most affected or disrupted by the massive technological developments today called the revolution industrian 4.0. Large companies that are growing today have dynamic and evolutive life cycles, crisis conditions including financial distress are physiological conditions that can be managed and overcome by companies. This research was conducted on 15 companies in the retail trade industry sector on the Indonesia Stock Exchange for the period 2012 - 2017. Using the OLS model, logit regression. The dependent variable as an indicator of financial distress is the interest coverage ratio (ICR). The independent variable that represents the companys performance, consists of the current ratio (CR), debt-equity ratio (DER), total asset turnover (TATO), and return on assets (ROA). The study found that the companies that became the sample of the study indicated experiencing financial distress, this is indicated by the four independent variables having negative beta coefficient, but the overall effect was not significant.

Keywords: Revolution industrial 4.0, Financial distress, Interest coverage ratio, CR, DER, TATO, ROA.

Topic: Finance and Accounting

Link: https://ifory.id/abstract/bZCTR4DPMh3X

Conference: Annual International Conference on Management Research (AICMAR 2019)

Plain Format | Corresponding Author (Imron HR)

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