Analysis of Financial Distress in Indonesia before and during Covid-19
This research aims to examine the effect of profitability, liquidity, operating cash flow, leverage, and ownership concentration on financial distress. This study uses a quantitative model using company financial statement data. The population of this study is the financial statements of companies in the secondary consumer goods sector that are listed on the Indonesia Stock Exchange within observation period of 2015 to 2021 which divided into before Covid-19 period of 2015 to 2019 and during Covid-19 period of 2020 to 2021. The sampling technique used in this study is purposive sampling. The sample for before Covid-19 period are 305 and during Covid-19 period are 122 that meet the criteria of sampling. The statistical method used to test the hypothesis is survival analysis. The results from this research are profitability, liquidity, operating cash flow and leverage have significant efect on financial distress with 95% level of confidence, meanwhile, ownership concentration has significant effect on financial distress with 90% level of confidence before Covid-19. For result during Covid-19, profitability and leverage have significant effect on financial distress with 95% level of confidence, meanwhile operating cash flow has significat effect on financial distress with 90% level of confident.
Keywords: financial distress, profitability, liquidity, operating cash flow, leverage, ownership
