Financial Distress Analysis in Manufacturing Companies using The Panel Vector Auto Regression (PVAR) Approach
Abstract
A good company's financial condition will attract investors in their investment decisions, managers in their financial decisions, and Current Ratioeditors in supporting their funding decisions. If the company's financial condition is bad and has an impact on the company's fate, then external parties will not want to work with the company because the company is on the verge of bankruptcy. This study aims to determine the effect of profitability ratios, liquidity ratios, and leverage ratios on financial distress. This study uses the Panel Vector Auto Regression (PVAR) approach, which concludes that the liquidity ratio proxied by the current ratio has a greater influence on financial distress than other variables.
References
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Sugiono, A. dan E., & Untung. (n.d.). Panduan Praktis Dasar Analisa Laporan Keuangan Pengetahuan Dasar bagi Mahasiswa. Grasindo. Retrieved January 5, 2023, from https://www.google.co.id/books/edition/PANDUAN_PRAKTIS_DASAR_ANALISA_LAPORAN_KE/IG3BGdkEy9gC?hl=id&gbpv=1&dq=Menurut+Lyn+M.+Fraser+dalam+rasio+profitabilitas&pg=PA60&printsec=frontcover
Sunaryo, D. (2021). Analysis Of Current Ratio, Debt To Assets Ratio And Gross Profit Margin On Financial Distress With Moderated Share Prices In Retail Companies Listed In Securities Exchange. International Journal of Educational Research & Social Sciences, 2(1), 23–33. https://doi.org/10.51601/ijersc.v2i1.39
Wangsih, I. C., Yanti, D. R., Yohana, Kalbuana, N., & Cahyadi, C. I. (2021). Influence Of Leverage , Firm Size , And Sales Growth On Financial Distress. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(4), 180–194.
Yuliani, N. K., & Anggaradana, I. N. (2021). Pengaruh Net Profit Margin, Return On Asset, Likuiditas Terhadap Financial Distress (Studi Kasus Pada Perusahaan Agriculture Terdaftar di Bursa Efek Indonesia Periode 2017-2019). Jurnal Ilmiah Akuntansi Dan Bisnis, 6(1), 1–9. https://doi.org/10.38043/JIAB.V6I1.3007
Ch Pandegirot, S. G., & Van Rate, P. (2019). Analisis Pengaruh Current Ratio, Institutional Ownership, Debt To Asset Ratio Terhadap Kondisi Financial Distress Pada Perusahaan Property Dan Real Estate Di Bursa Efek Indonesia 2013-2017. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis, Dan Akuntansi, 7(8), 3339–3348.
Chairunesia, W. (2021). Financial Ratios As a Prediction Tool for Financial Distress: Study on Manufacturing Companies Listed in Indonesia Stock Exchange for the 2018-2019 period. International Journal of Management Studies and Social Science Research, 3(4), 189–198. https://ijmsssr.org/paper/IJMSSSR00475.pdf
Dwiantari, R. A., Gede, L., & Artini, S. (2021). The Effect of Liquidity, Leverage, and Profitability on Financial Distress (Case Study of Property and Real Estate Companies on the IDX 2017-2019). American Journal of Humanities and Social Sciences Research, 5(1), 367–373. www.ajhssr.com
Ginting, M. C. (2017). Pengaruh Current Ratio dan Debt to Equity Ratio (DER) Terhadap Financial Distress pada Perusahaan Property & Real Estate di Bursa Efek Indonesia. JURNAL MANAJEMEN, 3(2), 37–44. https://ejournal.lmiimedan.net/index.php/jm/article/view/12
Habibi, H., & Utami, W. (2022). Study of CoVD19 Pandemic, Financial Ratios, and Macroeconomic Impact on Financial Distress in Indonesian Manufacturing Firms Traded on the Indonesian Stock Exchange. International Journal of Economics, Business, and Entrepreneurship, 5(2), 98–108. https://doi.org/10.23960/IJEBE.V5I2.202
Ir. Kuswandi, M. B. A. (2008). Memahami Rasio Keuangan Orang Awam. Elex Media Komputindo. https://books.google.co.id/books?id=VsHn5UGk6CgC
Mayhad, S.R, dan Lestari, A. . (2019). Pengaruh Rasio Profitabilitas, Likuiditas, Laverage untuk Memprediksi Kondisi Financial Distress (Studi Empiris pada Perusahaan Manufaktur Sub Sektor Barang dan Konsumsi yang Terdaftar di Bursa Efek Indonesia Tahun 2017-2019). EkoBis Jurnal Ekonomi & Bisnis, 2, 129–136. https://doi.org/10.46821/ekobis.v2i2.239
Negoro, D. A., & Wakan, M. S. (2022). Effect Of Capital Structure, Liquidity,And Profitability On Financial Distress With The Effectiveness Of The Audit Committee As Variable Moderate (Study Empirics in Construction and Building Companiesin Indonesiaperiod 2018-2020). American International Journal of Business Management (AIJBM), 5(06), 63–82. https://www.aijbm.com/wp-content/uploads/2022/06/G566382.pdf
Ompusunggu, H., & Wage, M. S. (2021). Manajemen Keuangan (Poniman (ed.)). BATAM PUBLISHER. https://books.google.co.id/books?id=LKVYEAAAQBAJ
Putri, D. A. (2021). Analisis Prediksi Financial Distress Dengan Metode Zmijewski Pada Perusahaan Ritel Yang Terdaftar Di Bei Periode 2015-2019. Jurnal Ilmiah Mahasiswa Akuntansi, 1(2), 123–132. https://jom.universitassuryadarma.ac.id/index.php/jima/article/view/38
Putri, M., Hakim, M. Z., & Abbas, D. S. (2021). Pengaruh Return On Equity, Current Ratio Dan Debt To Asset Ratio Terhadap Financial Distress (Pada Perusahaan Sektor Agriculture yang Terdaftar di Bursa Efek Indonesia Tahun 2016-2019). 477–488. https://doi.org/10.32528/psneb.v0i0.5201
Rahmawati, I., Pandansari, T., & Khasanah, F. (2020). Liquidity Ratio Analysis, Profitability Ratio, Leverage Ratio, And Cash Flow Operations To Predict The Financial Distress In Manufacturing Companies Listed In Indonesia Stock Exchange (2015-2018). https://doi.org/10.4108/eai.5-8-2020.2301126
Silanno, G. L., & Loupatty, L. G. (2021). Pengaruh Current Ratio, Debt To Equity Ratio Dan Return On Asset Terhadap Financial Distress Pada Perusahaan-Perusahaan Di Sektor Industri Barang Konsumsi. Jurnal Ekonomi, Sosial & Humaniora, 2(07), 85–109. https://www.jurnalintelektiva.com/index.php/jurnal/article/view/482
Sudaryo, Y., Devi, W. S. G. R., Purnamasari, D., Kusumawardani, A., & Hadiana, A. (2021). Pengaruh Current Ratio (CR), Debt to Equity Ratio (DER) Dan Net Profit Margin (NPM) Terhadap Financial Distress. EKONAM: Jurnal Ekonomi, 3(1), 12–22. https://www.taylorfrancis.com/books/9781315468884/chapters/10.4324/9781315468891-39
Sugiono, A. dan E., & Untung. (n.d.). Panduan Praktis Dasar Analisa Laporan Keuangan Pengetahuan Dasar bagi Mahasiswa. Grasindo. Retrieved January 5, 2023, from https://www.google.co.id/books/edition/PANDUAN_PRAKTIS_DASAR_ANALISA_LAPORAN_KE/IG3BGdkEy9gC?hl=id&gbpv=1&dq=Menurut+Lyn+M.+Fraser+dalam+rasio+profitabilitas&pg=PA60&printsec=frontcover
Sunaryo, D. (2021). Analysis Of Current Ratio, Debt To Assets Ratio And Gross Profit Margin On Financial Distress With Moderated Share Prices In Retail Companies Listed In Securities Exchange. International Journal of Educational Research & Social Sciences, 2(1), 23–33. https://doi.org/10.51601/ijersc.v2i1.39
Wangsih, I. C., Yanti, D. R., Yohana, Kalbuana, N., & Cahyadi, C. I. (2021). Influence Of Leverage , Firm Size , And Sales Growth On Financial Distress. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(4), 180–194.
Yuliani, N. K., & Anggaradana, I. N. (2021). Pengaruh Net Profit Margin, Return On Asset, Likuiditas Terhadap Financial Distress (Studi Kasus Pada Perusahaan Agriculture Terdaftar di Bursa Efek Indonesia Periode 2017-2019). Jurnal Ilmiah Akuntansi Dan Bisnis, 6(1), 1–9. https://doi.org/10.38043/JIAB.V6I1.3007
Published
2023-08-07
How to Cite
Khoiriah, S., & Rahmayanti, D. (2023). Financial Distress Analysis in Manufacturing Companies using The Panel Vector Auto Regression (PVAR) Approach. Annual International Conference on Islamic Economics and Business (AICIEB), 3, 12-23. https://doi.org/https://doi.org/10.18326/aicieb.v3i0.411
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