The Effect of Profitability Towards Financial Distress

Συγγραφείς

  • Thomson Sitompul Universitas Jambi
  • Debra Juneta
  • Muhammad Kifli Siregar

Λέξεις-κλειδιά:

Profitability, Financial Distress, Manufactures

Περίληψη

This research distinguishes itself from previous studies by using data from 2017 to 2023. This study was conducted for the purpose to know the effect of profitability towards financial distress in manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2017 – 2023, data from 226 population. Data were collected using purposive sampling method, selected 46 companies, and 322 unit of observations as samples. The data analysis method in this research is multiple linear regression test and SPSS. This research has 1 dependent variable, 1 main independent variable, and 4 control variables. The dependent variable is financial distress which is calculated using Altman Z-Score model. The independent variable is profitability which is calculated with return on assets (ROA). The control variables are leverage, which is calculated using debt to asset ratio (DAR), liquidity is calculated using current ratio (CR), activity calculated using assets turnover, and firm size is calculated using natural logarithm of total asset. The result of this study shows that profitability and activity have significant and positive effect towards financial distress, leverage has a significant and negative effect towards financial distress, liquidity and firm size have no significant effect towards financial distress.

Αναφορές

Albers, M. J. (2017). Introduction to Quantitative Data Analysis in the Behavioral and Social Sciences. John Wiley & Sons.

Black, K. (2019). Business Statistics, John Wiley & Sons.

Danardhito, A, Widjanarko, H, & Kristanto, H. (2023). Determinan Penghindaran Pajak: Likuiditas, Leverage, Aktivitas, Profitabilitas, Pertumbuhan, dan Nilai Perusahaan. Jurnal Pajak Indonesia (JPI), 7(1), 45–56.

Davidson, W. (2020). Financial Statement Analysis: Basis for Management Advice. Wiley. Drake, P. P., & Fabozzi, F. (2012). Analysis of Financial Statements (3rd ed.). Wiley.

Eisenhardt, K. M. (1989). Agency Theory: An Assessment and Review. The Academy of Management Review, 14(1), 57–74. https://doi.org/10.2307/258191

Esdm.go.id. (2023). Peranan Sektor Pertambangan dalam Mendorong Perekenomian Nasional @www.esdm.go.id.

Fauzan, F., Ayu, D. A., & Nurhajanti, N. N. (2019). The Effect of Audit Committee, Leverage, Return on Assets, Company Size, and Sales Growth on Tax Avoidance. Riset Akuntansi dan Keuangan Indonesia, 4(3). 171 – 185.

Fiesty Utami & Adih Supriadi. (2023). Size of Company, Return on Assets, and Leverage on Tax Avoidance. Fiesty (Vol. 8, Issue 1). https://doi.org/10.33087/jmas.v8i1.1021

Gupta, B. C. (2021). Statistical Quality Control. John Wiley & Sons.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Corporate Governance: Values, Ethics and Leadership, 77–132. https://doi.org/10.4159/9780674274051-006

Kontan.co.id. (2023). Kontribusi Sektor Pertambangan dan Penggalian ke Pertumbuhan Ekonomi Terus Meningkat @ nasional.kontan.co.id.

Lestari, J., & Solikhah, B. (2019). The Effect of CSR, Tunneling Incentive, Fiscal Loss Compensation, Debt Policy, Profitability, Firm Size to Tax Avoidance. Accounting Analysis Journal, 8(1), 31–37. https://doi.org/10.15294/aaj.v8il.23103

Mariana, C., Riyadi, S. A., Fauzi, L. S. L., Khairunnisa, S. A., Yudhistira, R., & Mutisania, K. (2021). Leverage and Profitability on Tax Avoidance: Evidence on Mining Sector Companies Listed on The Indonesia Stock Exchange (Idx). Review of International Geographical Education (RIGEO), 11(3), 1542–1358. https://doi.org/10.33403/rigeo.800599

Mulyati, Y., Subing, H. J. T., Fathonah, A. N., & Prameela, A. (2019). Effect of Profitability, Leverage, and Company Size on Tax Avoidance. International Journal of Innovation, Creativity and Change, 6(8), 26–35.

Nasution, A. F., Anggraini, T., & Lubis, A. W. (2022). Pengaruh Ukuran Perusahaan, Umur Perusahaan, Profitabilitas, Leverage, dan Pertumbuhan Penjualan terhadap Tax Avoidance pada Perusahaan Manufaktur Sektor Makanan Dan Minuman Yang Terdaftar di Bursa Efek Indonesia Periode 2017-2020. 3(2), 510–529.

Prapitasari, A., & Safrida, L. (2019). the Effect of Profitability, Leverage, Firm Size, Political Connection and Fixed Asset Intensity on Tax Avoidance (Empirical Study on Mining Companies Listed in Indonesia Stock Exchange 2015-2017). ACCRUALS (Accounting Research Journal of Sutaatmadja), 3(2), 247–258. https://doi.org/10.35310/accruals.v3i2.56

Sari, D., Wardani, R. K., Lestari, D. F., Sari, D., Wardani, R. K., & Lestari, D. F. (2021). The Effect of Leverage, Profitability and Company Size on Tax Avoidance (An Empirical Study on Mining Sector Companies Listed on Indonesia Stock Exchange Period 2013-2019). 12(4), 860–868.

Schmidlin, N. (2014). The Art of Company Valuation and Financial Statement Analysis. Wiley Finance Series.

Sofiamanan, N. Z., Machmuddah, Z., & T.A.H, N. (2023). Profitability, Capital Intensity, and Company Size against Tax Avoidance with Leverage as an Intervening Variable. Journal of Applied Accounting and Taxation, 8(1), 21–29. https://doi.org/10.30871/jaat.v8il.4821

Watson, R. (2015). Quantitative Research. Nurs Stand. 29 (31): 44 – 8. Doi: 10.7748/ns.29.31.44.e8681.PMID:25828021.

Wirawan, S. L., Yuniarwati (2022). Faktor-Faktor Yang Mempengaruhi Tax Avoidance pada Perusahaan Barang Konsumsi di Indonesia. 318–337.

Λήψεις

Δημοσιευμένα

2026-07-31

Τεύχος

Τόμ. 7 Αρ. 1 (2026): APRIL

Ενότητα

Articles

Άδεια

Πνευματική ιδιοκτησία (c) 2026 Thomson Sitompul, Debra Juneta, Muhammad Kifli Siregar

Creative Commons License

Αυτή η εργασία είναι αδειοδοτημένη υπό το Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

1) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC-BY-SA 4.0) that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

2) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.

3) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website). The final published PDF should be used and bibliographic details that credit the publication in this journal should be included.