Influence of Leverage, Profit Margin, and Firm Size on Financial Distress on Property and Real Estate Sector Companies Listed on the Indonesia Stock Exchange 2019-2023
DOI:
https://doi.org/10.31949/fbmj.v3i1.15263Abstract
Companies running their business are affected by business cycles and economic challenges. Industry. A decrease in profits and a significant increase in debt ratios result in financial distress. This study aims to determine the effect of leverage, profit margin, and firm size on financial distress. The research method employed is quantitative, utilizing a descriptive and verification analysis approach. The population of this study is property and real estate companies listed on the Indonesia Stock Exchange in 2019-2023, totaling 92 companies. The sampling technique used was nonprobability sampling with the purposive sampling method, and a sample of 21 property and real estate companies over 5 years. The data analysis used is multiple linear regression and coefficient of determination analysis. The results show that partial leverage has a significant negative effect on financial distress, while profit margin and firm size have no significant effect on financial distress.
Keywords:
Leverage, Profit Margin, Firm Size, Financial DistressDownloads
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