Unravelling Financial Distress: The Impact of Profitability, Leverage, Liquidity, Operating Capacity and Company Size (original) (raw)

2023, Asian journal of economics, business and accounting

regression analysis, model feasibility test, and hypothesis test tested using the Eviews 13 analysis tool. Results: The results of the test analysis if the p-value is 0.03 < 0.05 with a positive coefficient value of 43.19423, then this shows that ROA has a significant positive effect on financial distress. The results of the test analysis if the p-value is 0.07 > 0.05, then this shows that DER has no effect on financial distress. The results of the test analysis if the p-value is 0.60 > 0.05, then this shows that CR has no effect on financial distress. The results of the test analysis if the p-value is 0.35 > 0.05, then this shows that TATO has no effect on financial distress. The results of the test analysis if the p-value is 0.04 < 0.05 with a negative coefficient value of-1.566118, then this shows that Company Size has a significant negative effect on financial distress. Conclusion: This quantitative study assesses the impact of profitability, leverage, liquidity, operating capacity, and company size on the financial distress of transportation and logistics companies using numerical data to test the hypothesis. Specifically, it evaluates the relationship between profitability, leverage, liquidity, operating capacity, and company size to financial distress.