THE ROLE OF CASH FLOW OF OPERATIONAL, PROFITABILITY, AND FINANCIAL LEVERAGE IN PREDICTING FINANCIAL DISTRESS ON MANUFACTURING COMPANY IN INDONESIA
The purpose of this study is to empirically test the influence of ratio on the cash flow of operational activities, profitability, and financial leverage towards financial distress condition that may emerge in manufacturing company in Indonesia. The population of this study consist of all manufactur...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
University of Brawijaya
2019-03-01
|
| Series: | Jurnal Aplikasi Manajemen |
| Subjects: | |
| Online Access: | https://jurnaljam.ub.ac.id/index.php/jam/article/view/1439 |
| _version_ | 1811284442133561344 |
|---|---|
| author | Florentina Cindy Finishtya |
| author_facet | Florentina Cindy Finishtya |
| author_sort | Florentina Cindy Finishtya |
| collection | DOAJ |
| description | The purpose of this study is to empirically test the influence of ratio on the cash flow of operational activities, profitability, and financial leverage towards financial distress condition that may emerge in manufacturing company in Indonesia. The population of this study consist of all manufacturing companies listed in Indonesia Stock Exchange in 2016. The sampling technique used is purposive sampling method, obtaining 111 manufacturing companies as the final research samples from a total data of 124 companies that were being observed. Altman Z-score model (1968) is used to determine whether the company is experiencing financial distress. Data analysis technique used is the binary logistic regression. The result of hypothesis testing shows that operating cash flow as measured by cash flow from operational/net sales is significant towards company’s financial distress, profitability measured by ROA shows a significance towards financial distress and financial leverage measured by DER does not show any significance towards financial distress. |
| first_indexed | 2024-04-13T02:28:41Z |
| format | Article |
| id | doaj.art-9e367cfa62ef46a8a7e2b68d088523a3 |
| institution | Directory Open Access Journal |
| issn | 1693-5241 2302-6332 |
| language | English |
| last_indexed | 2024-04-13T02:28:41Z |
| publishDate | 2019-03-01 |
| publisher | University of Brawijaya |
| record_format | Article |
| series | Jurnal Aplikasi Manajemen |
| spelling | doaj.art-9e367cfa62ef46a8a7e2b68d088523a32022-12-22T03:06:40ZengUniversity of BrawijayaJurnal Aplikasi Manajemen1693-52412302-63322019-03-0117110.21776/ub.jam.2019.017.01.12979THE ROLE OF CASH FLOW OF OPERATIONAL, PROFITABILITY, AND FINANCIAL LEVERAGE IN PREDICTING FINANCIAL DISTRESS ON MANUFACTURING COMPANY IN INDONESIAFlorentina Cindy Finishtya0Universitas Ciputra Surabaya UC Town CitraLand SurabayaThe purpose of this study is to empirically test the influence of ratio on the cash flow of operational activities, profitability, and financial leverage towards financial distress condition that may emerge in manufacturing company in Indonesia. The population of this study consist of all manufacturing companies listed in Indonesia Stock Exchange in 2016. The sampling technique used is purposive sampling method, obtaining 111 manufacturing companies as the final research samples from a total data of 124 companies that were being observed. Altman Z-score model (1968) is used to determine whether the company is experiencing financial distress. Data analysis technique used is the binary logistic regression. The result of hypothesis testing shows that operating cash flow as measured by cash flow from operational/net sales is significant towards company’s financial distress, profitability measured by ROA shows a significance towards financial distress and financial leverage measured by DER does not show any significance towards financial distress.https://jurnaljam.ub.ac.id/index.php/jam/article/view/1439Z-score- Altmanprofitabilityfinancial leverageoperating cash flowfinancial distress |
| spellingShingle | Florentina Cindy Finishtya THE ROLE OF CASH FLOW OF OPERATIONAL, PROFITABILITY, AND FINANCIAL LEVERAGE IN PREDICTING FINANCIAL DISTRESS ON MANUFACTURING COMPANY IN INDONESIA Jurnal Aplikasi Manajemen Z-score- Altman profitability financial leverage operating cash flow financial distress |
| title | THE ROLE OF CASH FLOW OF OPERATIONAL, PROFITABILITY, AND FINANCIAL LEVERAGE IN PREDICTING FINANCIAL DISTRESS ON MANUFACTURING COMPANY IN INDONESIA |
| title_full | THE ROLE OF CASH FLOW OF OPERATIONAL, PROFITABILITY, AND FINANCIAL LEVERAGE IN PREDICTING FINANCIAL DISTRESS ON MANUFACTURING COMPANY IN INDONESIA |
| title_fullStr | THE ROLE OF CASH FLOW OF OPERATIONAL, PROFITABILITY, AND FINANCIAL LEVERAGE IN PREDICTING FINANCIAL DISTRESS ON MANUFACTURING COMPANY IN INDONESIA |
| title_full_unstemmed | THE ROLE OF CASH FLOW OF OPERATIONAL, PROFITABILITY, AND FINANCIAL LEVERAGE IN PREDICTING FINANCIAL DISTRESS ON MANUFACTURING COMPANY IN INDONESIA |
| title_short | THE ROLE OF CASH FLOW OF OPERATIONAL, PROFITABILITY, AND FINANCIAL LEVERAGE IN PREDICTING FINANCIAL DISTRESS ON MANUFACTURING COMPANY IN INDONESIA |
| title_sort | role of cash flow of operational profitability and financial leverage in predicting financial distress on manufacturing company in indonesia |
| topic | Z-score- Altman profitability financial leverage operating cash flow financial distress |
| url | https://jurnaljam.ub.ac.id/index.php/jam/article/view/1439 |
| work_keys_str_mv | AT florentinacindyfinishtya theroleofcashflowofoperationalprofitabilityandfinancialleverageinpredictingfinancialdistressonmanufacturingcompanyinindonesia AT florentinacindyfinishtya roleofcashflowofoperationalprofitabilityandfinancialleverageinpredictingfinancialdistressonmanufacturingcompanyinindonesia |