Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Factors Affecting Potential Company Bankruptcy During the Covid-19 Pandemic

Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Factors Affecting Potential Company Bankruptcy During the Covid-19 Pandemic

current ratio; debt to asset ratio; financial distress; inflation; exchange rate; economic growth; sales growth; interest rates; total asset turnover

The Covid-19 pandemic that occurred has damaged the Economy of Indonesia and even the world. This poses a threat to companies in various sectors. Thus, this study aims to test the role of financial ratios (current ratio, debt to asset ratio, return on asset, total asset turnover, sales growth) and macroeconomic factors (inflation, exchange rate, interest rates, and economic growth) in predicting financial distress conditions in the pharmaceutical, telecommunications, hotel and restaurant, health, financing institutions listed on the Indonesia Stock Exchange, with the research model Altman Z-Score Modification as measured by methods based on multiple linear regression. The data used in this study is secondary data in the form of company financial statements taken quarterly for 2019-2020. In contrast, the debt to asset ratio had a significant negative impact, while inflation, exchange rates, interest rates, and economic growth didn’t affect financial distress conditions.

Risal Rinofah, Ratih Kusumawardhani, Virginia Athadhita Maha Putri

DOI: 10.26905/jkdp.v26i1.6752

Universitas Merdeka Malang

January 2022

Sri Wahyuni

ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)

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Jurnal Keuangan dan Perbankan Universitas Merdeka Malang