The Influence of Financial Ratios and Intellectual Capital on Financial Difficulties in Construction Companies

DOI

10.2991/assehr.k.201017.067How to use a DOI?

Keywords

financial ratio, Intellectual capital, financial distress

Abstract

The research aims to investigate the influence and relationship of financial ratios with the liquidity ratio indicators, leverage, profitability, activity, growth, and intellectual capital indicators with Human Capital, Structure Capital, and Customer Capital on financial difficulties (financial distress) with cash flow analysis indicators, corporate strategy, financial statements on construction companies. Theresearch was conducted in Sengkang, Wajo District, South Sulawesi usingnon-probability sampling and purposive sampling. The data analysis technique used is double linear regression analysis. The results of the research findings proved that both simultaneous and partial intellectual ratios of the financial and capital have no significant effect on financial difficulties. In comparison,the correlation analysis shows the ratio of financial and intellectual capital simultaneously not significant to financial distress or negative relation where the greater the variable of financial and intellectual capital ratio, the greater the decrease in the value of variables of financial difficulties.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Hasanuddin
AU  - M. Risal
AU  - Muhammad Aqsa
PY  - 2020
DA  - 2020/10/20
TI  - The Influence of Financial Ratios and Intellectual Capital on Financial Difficulties in Construction Companies
BT  - Proceedings of the International Conference on Community Development (ICCD 2020)
PB  - Atlantis Press
SP  - 303
EP  - 307
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.201017.067
DO  - 10.2991/assehr.k.201017.067
ID  - 2020
ER  -