DOI: https://doi.org/10.9744/jak.22.1.30-36

Which Retail Firm Characteristics Impact On Financial Distress?

Elok Heniwati, Erlina Essen

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.

Keywords


Liquidity, Profitability, Leverage, Sales Growth, Operating Capacity, Firm Size, Financial Distress

Full Text:

PDF

References


Altman, Edward I. (1968). “Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy.” The British Journal of Finance, XXIII(4), 589–609.

Anggraini, Dewi. (2016). “Financial Distress Model Prediction for Indonesian Companies.” International Journal of Management and Admi¬nistrative Sciences, 3(4), 74-84.

Beaver, William H. (1966). “Financial Ratios as Predictors of Failure.” Journal of Accounting Research, 4, 71–111. https://doi.org/10.2307/ 2490171.

Blum, Marc. (1974). “Failing Company Dis-criminant Analysis”. Journal of Accounting Research, 12(1), 1–25. https://doi.org/10.2307/ 2490525.

Cultrera, Loredana, and Xavier Brédart. (2016). “Bankruptcy Prediction: The Case of Belgian SMEs.” Review of Accounting and Finance, 15(1), 101–119. https://doi.org/10.1 108/RAF-06-2014-0059.

Curry, Khirstina, and Erliana Banjarnahor. (2018). “Financial Distress Pada Perusahaan Sektor Properti Go Public Di Indonesia.” In Seminar Nasional Pakar Ke 1, 207–221.

Fatmawati, Mila. (2012). “Penggunaan the Zmijewski Model, the Altman Model, Dan the Springate Model Sebagai Prediktor Delisting.” Jurnal Keuangan Dan Perbankan 16(1), 56–65.

Hemmert, Giselmar A. J., Laura M. Schons, Jan Wieseke, and Heiko Schimmelpfennig. (2018). “Log-Likelihood-Based Pseudo-R2 in Logistic Regression: Deriving Sample-Sensi¬tive Benchmarks.” Sociological Methods & Research, 47(3), 507–531. https://doi.org/ https:// doi.org/10.1177/0049124116638107.

Heniwati, Elok. (2019). “Studi Empiris Ke¬kuat¬an Stabilitas Keuangan Perbankan Sya¬riah Di Indonesia.” Jurnal Ekonomi Bisnis Dan Kewirausahaan, 8(2): 147-160. https://doi. org/10.26418/jebik.v8i2.28015.

Jensen, Michael C, and William H Meckling. (1976). “Theory of the Firm: Managerial Beha¬vior, Agency Costs and Ownership Structure. J. Fin. Econ. 3, 162–176.

Jiming, Li, and Du Weiwei. (2011). “An Empi¬rical Study on the Corporate Financial Distress Prediction Based on Logistic Model: Evidence from China’s Manufacturing Industry.” Inter-national Journal of Digital Content Technology and Its Applications, 5(6), 368–379. https://doi. org/10.4156/jdcta.vol5.issue6.44.

Lai, Hui Yin, Abdul Rashid Abdul Azis, and Toong Khuan Chan. (2014). “Effect of the Global Financial Crisis on the Financial Performance of Public Listed Construction Companies in Malaysia.” Journal of Financial Management of Property and Construction, 19(3), 246–263. https://doi.org/10.1108/JFM PC-02-2014-0002.

Lawrence, Kenneth D., Dinesh R. Pai, and Gary Kleinman. (2015). “Bankruptcy Predic¬tion in Retail Industry Using Logistic Regres¬sion.” Financial Modeling and Data Envelop¬ment Applications, 13, 61–69. https://doi.org/ 10.1108/S0276-8976(2009)0000013006.

Lisiantara, G. Anggana, and Lilik Febrina. (2018). “Growth Sebagai Preditor Financial Distress (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2013-2016).” Prosiding SENDI, 978–979.

Masdupi, Erni, Abel Tasman, and Atri Davis¬ta. (2018). “The Influence of Liquidity, Leve¬rage and Profitability on Financial Distress of Listed Manufacturing Companies in Indone¬sia.” Advances in Economics, Business and Management Research, 7, 223–228. https://doi. org/10.2991/piceeba-18.2018.51.

Maulidina, Dara. (2014). “Faktor-Faktor Yang Mempengaruhi Financial Distress Pada Per-usaha¬an Manufaktur Yang Terdaftar Di Bei.” Media Riset Akuntansi, Auditing & Informasi, 14(3), 89–106.

Murtadha, Milla Alsura, Murtadha, Milla Alsu¬¬ra, Muhammad Arfan, and Mulia Saputra. (2018). “Factors Influencing Finan¬cial Distress and Its Impact on Company Values of the Sub-Sectors Firms in Indone¬sian.” Journal of Accounting Research, Organi¬zation and Economics, 1(2), 191–204. https://doi. org/10.24815/jaroe.v1i2.11883.

Ohlson, James A. (1980). “Financial Ratios and the Probabilistic Prediction of Bankruptcy.” Journal of Accounting Research, 18(1), 109. https://doi.org/10.2307/2490395.

Panggabean, Martin, and Stefan Batara Pang-gabean. (2019). “Key Determinants of Indone¬sia’s Banks Financial Performance.” Jurnal Akuntansi Dan Keuangan, 21(2), 58–67. https://doi.org/10.9744/jak.21.2.58-67.

Platt, Harlan D., and Marjorie B. Platt. (2002). “Predicting Corporate Financial Distress: Reflections on Choice-Based Sample Bias.” Journal of Economics and Finance, 26(2), 184–199. https://doi.org/10.1007/bf02755985.

Prastiwi, Bela Indah and Rosiyana Dewi. (2019). “Pengaruh Managerial Agency Cost Terhadap Financial Distress Dengan Struktur Kepemilikan Sebagai Variabel Pemoderasi.” Jurnal Informasi, Akuntansi dan Keuangan Publik, 14(1), 81-104. https://dx.doi.org/10. 25105/jipak.v14i1.5016

Restianti, Tya, and Linda Agustina. (2018). “The Effect of Financial Ratios on Financial Distress Conditions in Sub Industrial Sector Company.” Accounting Analysis Journal, 7(1), 25–33. https://doi.org/10.15294/aaj.v5i3.18996.

Rianti, Inten Puji, and Wiwin Yadiati. (2018). “The Influence Firm Size on Financial Dis¬tress: A Research on Agricultural Companies Listed in Indonesia Stock Exchange.” Inter¬national Business Management.

Ross, Stephen A. (1977). “Determination of Financial Structure: The Incentive-Signalling Approach.” The British Journal of Economics, 8(1), 23–40. https://doi.org/10.2469/dig.v27.n1.2.

Savitha, Basri, and Naveen Kumar K. (2016). “Non-Performance of Financial Contracts in Agricultural Lending: A Case Study from Kar¬na-taka, India.” Agricultural Finance Review, 76(3), 362–377. https://doi.org/10.1108/AFR-01-2016-0001.

Sayari, Naz, and Can Simga Mugan. (2017). “Industry Specific Financial Distress Model¬ing”. BRQ Business Research Quarterly, 20, 45-62. https://creativecommons.org/licenses/by-nc. nd/4.0/

Shaari, Noor Azizah, Nurfadhilah Abu Hasan, Yamuna Rani Palanimally, Kumar Moona, and Haji Mohamed. (2013). “The Determi¬nants of Derivative Usage: A Study on Malay¬sian Firms.” Journal of Contemporary Rese¬arch in Business, 5(2), 300–316.

Shahid, Muhammad Ali, and Zaheer Abbas. (2012). “Financial Stability of Islamic Banking in Pakistan: An Empirical Study.” African Journal of Business Management, 6(10), 3706–3714. https://doi.org/10.5897/ajbm11.1306.

Spence, Michael. (1973). “Job Market Signal¬ing.” The Quarterly Journal of Economics, 87(3), 355–374.

Succurro, Marianna, Giuseppe Arcuri, and Giuseppina Damiana Costanzo. (2019). “A Combined Approach Based on Robust PCA to Improve Bankruptcy Forecasting.” Review of Accounting and Finance, 18(2), 296–320. https://doi.org/10.1108/RAF-04-2018-0077.

Thim, Chan Kok, Yap Voon Choong, and Chai Shin Nee. (2011). “Factors Affecting Financial Distress: The Case of Malaysian Public Listed Firms.” Corporate Ownership and Control, 8(4D), 345–351. https://doi.org/10.22495/cocv 8i4c3art3.

Widhiari, Ni Luh Made Ayu, and Ni K. Lely Aryani Merkusiwati. (2015). “Pengaruh Rasio Likuiditas, Leverage, Operating Capacity, Dan Sales Growth Terhadap Financial Distress.” E-Jurnal Akuntansi, 11(2), 456–469.

Zhafirah, Anindya, and Majidah. (2019). “Analisis Determinan Financial Distress (Studi Empiris Pada Perusahaan Subsektor Tekstil Dan Garmen Periode 2013-2017).” Jur¬nal Riset Akuntansi Dan Keuangan, 7(1), 195–202. https://doi.org/10.17509/jrak.v7i1.15497.

Zmijewski, Mark E. (1984). “Methodological Issues Related to the Estimation of Financial Distress Prediction Models.” Journal of Account¬ing Research, 22, 59–82. https://doi.org/ 10.2307/2490859.




DOI: https://doi.org/10.9744/jak.22.1.30-36



Template for Preparing Article for JAK

The Journal is published by The Institute of Research & Community Outreach - Petra Christian University. It available online supported by Directorate General of Higher Education - Ministry of National Education - Republic of Indonesia.

©All right reserved 2018. Jurnal Akuntansi dan Keuangan, ISSN: 1411-0288, e-ISSN: 2338-8137

click tracking
View My Stats