Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)

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The Effect of Liquidity, Firm Size and Leverage on Financial Distress

Study on Mining Companies on The Indonesia Stock Exchange (IDX) in 2017-2019

Authors
Merisa Oktaria1, *, Maria Yanida2, Rinto Alexandro1, Tonich Tonich1, Windy Utami Putri1
1Department of Economics Education, Universitas Palangka Raya, Palangka Raya, Indonesia
2Department of Accounting, STIE YBPK Palangka Raya, Indonesia
*Corresponding author. Email: merisa.oktaria@fkip.upr.ac.id
Corresponding Author
Merisa Oktaria
Available Online 25 November 2021.
DOI
10.2991/aebmr.k.211124.068How to use a DOI?
Keywords
Liquidities; Firm size; Leverage; Financial distress
Abstract

The goal of this research is to shed light on the relationship between financial hardship and variables like liquidity, business size, and leverage. Multiple regression analysis was performed as part of the study’s quantitative approach. The study was conducted on 22 mining companies with a research period of 2017-2019 and analyzed using SPSS version 23 software. The results showed that the liquidity variable proxied by current assets and the leverage variable proxied by the debt to equity ratio (DER) are known to have no effect on financial distress. While the size of the company has an effect on financial distress. The suggestions that can be given by the author are 1) so that investors should consider the factors that influence financial distress in making decisions, so that the decisions taken can be right in investing their funds and are able to avoid the risk of financial difficulties and 2) so that the management should pay attention to the condition again. companies, especially companies with potential financial difficulties, so that they can be used as a basis for taking corrective actions as soon as possible if they see indications that the company is experiencing financial distress.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
25 November 2021
ISBN
10.2991/aebmr.k.211124.068
ISSN
2352-5428
DOI
10.2991/aebmr.k.211124.068How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
TY  - CONF
AU  - Merisa Oktaria
AU  - Maria Yanida
AU  - Rinto Alexandro
AU  - Tonich Tonich
AU  - Windy Utami Putri
PY  - 2021
DA  - 2021/11/25
TI  - The Effect of Liquidity, Firm Size and Leverage on Financial Distress
BT  - Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)
PB  - Atlantis Press
SP  - 484
EP  - 489
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211124.068
DO  - 10.2991/aebmr.k.211124.068
ID  - Oktaria2021
ER  -