Working environmental quality and financial distress: evidence from Indonesia
AbstractThis study investigates the impact of the quality of the working environment on a company’s financial distress, focusing on non-financial public companies listed on the Indonesia Stock Exchange from 2019 to 2021. The observation utilizes 1,103 samples derived from annual reports and employs...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2024-12-01
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| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2023.2292813 |
| _version_ | 1797304137300312064 |
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| author | Amalia Rizki Mohammad Nasih Fiona Vista Putri |
| author_facet | Amalia Rizki Mohammad Nasih Fiona Vista Putri |
| author_sort | Amalia Rizki |
| collection | DOAJ |
| description | AbstractThis study investigates the impact of the quality of the working environment on a company’s financial distress, focusing on non-financial public companies listed on the Indonesia Stock Exchange from 2019 to 2021. The observation utilizes 1,103 samples derived from annual reports and employs logistic regression, Coarsened Exact Matching (CEM), and Heckman Two-Stage analysis to ensure robust results. The findings reveal a significant inverse relationship between the quality of the working environment and financial distress, which remains consistent across different proxies of financial distress. These results offer valuable insights for company management in Indonesia, suggesting that enhancing the work environment can be a strategic approach to mitigating financial distress risks. Additionally, the study’s outcomes can aid regulators in formulating policies that foster a high-quality working environment, thereby contributing to the stability of the business sector in a region characterized by unique social, cultural, and economic dynamics. The research underscores the importance of the working environment in influencing companies’ financial performance in Indonesia, providing practical guidance for both corporate management and policymakers. |
| first_indexed | 2024-03-08T00:04:06Z |
| format | Article |
| id | doaj.art-67fe3186af4a4ac08c45e0aae3e7a5bc |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-03-08T00:04:06Z |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-67fe3186af4a4ac08c45e0aae3e7a5bc2024-02-17T10:34:09ZengTaylor & Francis GroupCogent Business & Management2331-19752024-12-0111110.1080/23311975.2023.2292813Working environmental quality and financial distress: evidence from IndonesiaAmalia Rizki0Mohammad Nasih1Fiona Vista Putri2Department of Accounting, Faculty of Economic and Business, Universitas Airlangga, Surabaya, East Java, IndonesiaDepartment of Accounting, Faculty of Economic and Business, Universitas Airlangga, Surabaya, East Java, IndonesiaDepartment of Accounting, Faculty of Economic and Business, Universitas Airlangga, Surabaya, East Java, IndonesiaAbstractThis study investigates the impact of the quality of the working environment on a company’s financial distress, focusing on non-financial public companies listed on the Indonesia Stock Exchange from 2019 to 2021. The observation utilizes 1,103 samples derived from annual reports and employs logistic regression, Coarsened Exact Matching (CEM), and Heckman Two-Stage analysis to ensure robust results. The findings reveal a significant inverse relationship between the quality of the working environment and financial distress, which remains consistent across different proxies of financial distress. These results offer valuable insights for company management in Indonesia, suggesting that enhancing the work environment can be a strategic approach to mitigating financial distress risks. Additionally, the study’s outcomes can aid regulators in formulating policies that foster a high-quality working environment, thereby contributing to the stability of the business sector in a region characterized by unique social, cultural, and economic dynamics. The research underscores the importance of the working environment in influencing companies’ financial performance in Indonesia, providing practical guidance for both corporate management and policymakers.https://www.tandfonline.com/doi/10.1080/23311975.2023.2292813Working environment qualityfinancial distressgovernanceIndonesiaJ01; G32; G41Collins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland |
| spellingShingle | Amalia Rizki Mohammad Nasih Fiona Vista Putri Working environmental quality and financial distress: evidence from Indonesia Cogent Business & Management Working environment quality financial distress governance Indonesia J01; G32; G41 Collins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland |
| title | Working environmental quality and financial distress: evidence from Indonesia |
| title_full | Working environmental quality and financial distress: evidence from Indonesia |
| title_fullStr | Working environmental quality and financial distress: evidence from Indonesia |
| title_full_unstemmed | Working environmental quality and financial distress: evidence from Indonesia |
| title_short | Working environmental quality and financial distress: evidence from Indonesia |
| title_sort | working environmental quality and financial distress evidence from indonesia |
| topic | Working environment quality financial distress governance Indonesia J01; G32; G41 Collins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2023.2292813 |
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