Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022)

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Predicting the Risk of Financial Distress Using Intellectual Capital and Financial Ratio

Authors
Nabilla Fitri Mellin Timoty1, Nurcahyono Nurcahyono1, *, Khansa Yasaputri2, Dyah Ekaari Sekar Jatiningsih2
1Department of Accounting, Universitas Muhammadiyah Semarang, Semarang, Indonesia
2Department of Accounting, Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia
*Corresponding author.
Corresponding Author
Nurcahyono Nurcahyono
Available Online 22 May 2023.
DOI
10.2991/978-94-6463-154-8_22How to use a DOI?
Keywords
Financial distress; audit committee; intellectual capital; operating cash flow; leverage; independent commissioner
Abstract

The economic downturn was resulting from the Covid-19 pandemic impacted financial difficulties in financial sector companies. Financial sector companies that have negative equity and were delisted from the IDX. So it is essential to know which indicators can be used to identify financial distress early and avoid bankruptcy. The goal to be achieved from the results of this study is to empirically determine the influence of the audit committee, intellectual capital, operating cash flow, and leverage on financial distress moderated by independent commissioners in financial sector companies in Indonesia. This study uses a quantitative approach This study uses a quantitative approach. The unit of analysis for this research is the financial sector from 2017 to 2021, with 235 observations. Using a purposive sampling technique, 57 companies were studied. The analytical method used is Moderated Regression which is processed using the SPSS 26 application. The results show that the audit committee and intellectual capital positively influence financial distress, while operating cash flow and leverage variables negatively affect financial distress. The study results show that the independent commissioner can moderate the effect of the dependent variable on financial desperation.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
22 May 2023
ISBN
10.2991/978-94-6463-154-8_22
ISSN
2352-5428
DOI
10.2991/978-94-6463-154-8_22How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Nabilla Fitri Mellin Timoty
AU  - Nurcahyono Nurcahyono
AU  - Khansa Yasaputri
AU  - Dyah Ekaari Sekar Jatiningsih
PY  - 2023
DA  - 2023/05/22
TI  - Predicting the Risk of Financial Distress Using Intellectual Capital and Financial Ratio
BT  - Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022)
PB  - Atlantis Press
SP  - 228
EP  - 245
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-154-8_22
DO  - 10.2991/978-94-6463-154-8_22
ID  - Timoty2023
ER  -