Angelica, Angelica (2019) The impact of current ratio, debt to equity ratio and firm size to predict financial distress on basic industry and chemical companies listed on indonesia stock exchange. Bachelor thesis, Universitas Pelita Harapan.
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Abstract
Financial distress is a period in which company experience financial disruption before the company goes bankrupt. Analysis of financial distress really need to be done from the beginning to anticipate the bankruptcy of the company. A
company need to develop a model that describes the prediction of bankruptcy through analysis of financial distress. By knowing the causes of financial distress,
company will be more careful in making financial decisions. This research aims to analyze whether the factors of current ratio, debt to equity ratio and firm size can predict financial distress of company.The population in this research are all basic industry and chemical companies that listed on Indonesia Stock Exchange. The sampling method is done by purposive sampling method with several set criteria. This research is done by Altman Z-Score method to indicate the level of financial distress and logistic regression model to test whether the probability of the occurrence of financial distress (dependent variable) can be predicted by current ratio, debt to equity ratio and firm size (independent variables).The population in this research are all basic industry and chemical companies that listed in Indonesia Stock Exchange with total 65 companies. With
certain set criterias, 17 companies are used as a sample. Research period is from 2013 to 2016.The result of this research shows that current ratio, debt to equity ratio and
firm size simultaneously can predict the company’s financial distress. But partially, only current ratio and debt to equity ratio variable are able to predict the condition
of company’s bankruptcy.
Item Type: | Thesis (Bachelor) |
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Creators: | Creators NIM Email ORCID Angelica, Angelica 1501010232 UNSPECIFIED UNSPECIFIED |
Contributors: | Contribution Contributors NIDN/NIDK Email Thesis advisor Hantono, Hantono UNSPECIFIED UNSPECIFIED |
Uncontrolled Keywords: | Altman z-score, Logistic regression, Financial distress, Current ratio, Debt to equity ratio, Firm Size, Indonesia stock exchange |
Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting |
Divisions: | University Subject > Current > Faculty/School - UPH Medan > Business School > Accounting Current > Faculty/School - UPH Medan > Business School > Accounting |
Depositing User: | Debora Sitepu |
Date Deposited: | 22 Jun 2021 08:29 |
Last Modified: | 13 Jan 2022 02:59 |
URI: | http://repository.uph.edu/id/eprint/35323 |