The Effect of Liquidity, Leverage, Profitability, Operating Capacity, and Managerial Agency Cost on Financial Distress of Manufacturing Companies Listed in Indonesian Stock Exchange
Authors
Yeye Susilowati, Titiek Suwarti, Elen Puspitasari, Farrah Anggita Nurmaliani
Corresponding Author
Yeye Susilowati
Available Online October 2019.
- DOI
- 10.2991/icoi-19.2019.114How to use a DOI?
- Keywords
- liquidity, leverage, profitability, operating capacity, managerial agency cost.
- Abstract
This study aims to analyze the effect of liquidity, leverage, profitability, operating capacity, and managerial agency cost on financial distress. Using purposive sampling, 203 manufacturing companies listed on the Indonesian stock exchange for the period 2015 – 2017 are determined as a sample. Logistic regression was analyzed using SPSS 19 software. The results show that liquidity and managerial agency cost have no effect on financial distress. Leverage further has a significant positive effect on financial distress, whereas profitability and operating capacity have a significant negative effect on financial distress.
- Copyright
- © 2019, 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/).
Cite this article
TY - CONF AU - Yeye Susilowati AU - Titiek Suwarti AU - Elen Puspitasari AU - Farrah Anggita Nurmaliani PY - 2019/10 DA - 2019/10 TI - The Effect of Liquidity, Leverage, Profitability, Operating Capacity, and Managerial Agency Cost on Financial Distress of Manufacturing Companies Listed in Indonesian Stock Exchange BT - Proceedings of the 2019 International Conference on Organizational Innovation (ICOI 2019) PB - Atlantis Press SP - 651 EP - 656 SN - 2352-5428 UR - https://doi.org/10.2991/icoi-19.2019.114 DO - 10.2991/icoi-19.2019.114 ID - Susilowati2019/10 ER -