FINANCIAL DISTRESS PREDICTION OF FINANCIAL SECTOR SERVICE COMPANIES ON INDONESIAN STOCK EXCHANGE USING COX PROPORTIONAL HAZARD

A company that cannot compete with its competitors is likely to experience financial difficulties or commonly referred to as financial distress. Financial distress is a stage of a decline in the company's financial condition or a situation of financial difficulty that occurred before the compan...

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Main Authors: Candra Yanuar Dwi Putra, Mohamat Fatekurohman, Dian Anggraeni
Format: Article
Language:English
Published: Universitas Pattimura 2022-09-01
Series:Barekeng
Subjects:
Online Access:https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/5006
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author Candra Yanuar Dwi Putra
Mohamat Fatekurohman
Dian Anggraeni
author_facet Candra Yanuar Dwi Putra
Mohamat Fatekurohman
Dian Anggraeni
author_sort Candra Yanuar Dwi Putra
collection DOAJ
description A company that cannot compete with its competitors is likely to experience financial difficulties or commonly referred to as financial distress. Financial distress is a stage of a decline in the company's financial condition or a situation of financial difficulty that occurred before the company went bankrupt. This study aims to determine the factors that can predict a company experiencing financial distress. The factors suspected in this study include leverage, profitability, company size, free cash flow and sales growth. The method used is the Cox Proportional Hazard model. The research data is data on financial sector service companies listed on the Indonesia Stock Exchange (IDX) for 5 years of observation, namely from 2016 to 2020. Based on the results of the analysis of financial distress predictions using the Cox Proportional Hazard model, it is found that the factors that have a significant effect on predicting companies experiencing financial distress are: financial distress, namely profitability and company size.
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institution Kabale University
issn 1978-7227
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language English
publishDate 2022-09-01
publisher Universitas Pattimura
record_format Article
series Barekeng
spelling doaj-art-68461bf96da14edaa346c96fe55ec8442025-08-20T04:01:48ZengUniversitas PattimuraBarekeng1978-72272615-30172022-09-011631105111410.30598/barekengvol16iss3pp1105-11145006FINANCIAL DISTRESS PREDICTION OF FINANCIAL SECTOR SERVICE COMPANIES ON INDONESIAN STOCK EXCHANGE USING COX PROPORTIONAL HAZARDCandra Yanuar Dwi Putra0Mohamat FatekurohmanDian AnggraeniJember UniversityA company that cannot compete with its competitors is likely to experience financial difficulties or commonly referred to as financial distress. Financial distress is a stage of a decline in the company's financial condition or a situation of financial difficulty that occurred before the company went bankrupt. This study aims to determine the factors that can predict a company experiencing financial distress. The factors suspected in this study include leverage, profitability, company size, free cash flow and sales growth. The method used is the Cox Proportional Hazard model. The research data is data on financial sector service companies listed on the Indonesia Stock Exchange (IDX) for 5 years of observation, namely from 2016 to 2020. Based on the results of the analysis of financial distress predictions using the Cox Proportional Hazard model, it is found that the factors that have a significant effect on predicting companies experiencing financial distress are: financial distress, namely profitability and company size.https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/5006financial distressanalisis survivalcox proportional hazard
spellingShingle Candra Yanuar Dwi Putra
Mohamat Fatekurohman
Dian Anggraeni
FINANCIAL DISTRESS PREDICTION OF FINANCIAL SECTOR SERVICE COMPANIES ON INDONESIAN STOCK EXCHANGE USING COX PROPORTIONAL HAZARD
Barekeng
financial distress
analisis survival
cox proportional hazard
title FINANCIAL DISTRESS PREDICTION OF FINANCIAL SECTOR SERVICE COMPANIES ON INDONESIAN STOCK EXCHANGE USING COX PROPORTIONAL HAZARD
title_full FINANCIAL DISTRESS PREDICTION OF FINANCIAL SECTOR SERVICE COMPANIES ON INDONESIAN STOCK EXCHANGE USING COX PROPORTIONAL HAZARD
title_fullStr FINANCIAL DISTRESS PREDICTION OF FINANCIAL SECTOR SERVICE COMPANIES ON INDONESIAN STOCK EXCHANGE USING COX PROPORTIONAL HAZARD
title_full_unstemmed FINANCIAL DISTRESS PREDICTION OF FINANCIAL SECTOR SERVICE COMPANIES ON INDONESIAN STOCK EXCHANGE USING COX PROPORTIONAL HAZARD
title_short FINANCIAL DISTRESS PREDICTION OF FINANCIAL SECTOR SERVICE COMPANIES ON INDONESIAN STOCK EXCHANGE USING COX PROPORTIONAL HAZARD
title_sort financial distress prediction of financial sector service companies on indonesian stock exchange using cox proportional hazard
topic financial distress
analisis survival
cox proportional hazard
url https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/5006
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AT mohamatfatekurohman financialdistresspredictionoffinancialsectorservicecompaniesonindonesianstockexchangeusingcoxproportionalhazard
AT diananggraeni financialdistresspredictionoffinancialsectorservicecompaniesonindonesianstockexchangeusingcoxproportionalhazard