THE EFFECTS OF PROFITABILITY AND CAPITAL STRUCTURE ON FINANCIAL DISTRESS (Survey for Indonesian’s Go-Public Companies of Textile and Garment Segment in Period 2016-2019)
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Solid State Technology Volume: 63 Issue: 4
Abstract
This study was conducted to determine the magnitude of the effect of the partial and
simultaneous testing, namely the effect of profitability and capital structure on financial
distress in Indonesian’s go-public companies of textile and garment segment in period 2016-
2019. The sample used in this study were 11 companies with a study period of 4 years. The
data analysis technique used in this study is the multiple regression analysis. The results of
the study partially show that profitability (Return on Assets) and capital structure (Debt to
Assets Ratio) have a significant effect on financial distress. Simultaneously show profitability
(Return on Assets) and capital structure (Debt to Assets Ratio) have a significant effect on
financial distress. The amount of effect shows profitability (Return on Assets) and capital
structure (Debt to Assets Ratio) against financial distress of 59.6%, while the rest of 40.4%
influenced by other variables outside the research model.
Description
Keywords
Profitability (Return On Assets), Capital Structure (Debt to Assets Ratio), Financial Distress