The Effect of Profitability and Managerial Ownership on Financial Distress with Capital Structure as Moderating Variable

Sulasman  Ardi; Windijarto

doi:10.54783/ijsoc.v5i4.772

Sulasman Ardi Airlangga University, Surabaya, Indonesia
Windijarto Airlangga University, Surabaya, Indonesia

DOI: https://doi.org/10.54783/ijsoc.v5i4.772

Keywords: Profitability, Managerial Ownership, Capital Structure, Financial Distress.

Abstract

This study is being conducted as a continuation of previous research and intends to ascertain the impact of management ownership and profitability on financial distress moderation of capital structure. ROE predicts profitability, while DER predicts the capital structure. Financial reports and yearly reports are used in the research to round out the facts. The Indonesia Stock Exchange's (IDX) tourist industry was the population and sample, and the observation period was from 2019 to 2021. SPSS software is used for data analysis to evaluate the hypothesis. The findings demonstrate that managerial ownership and profitability have an impact on financial distress in tourism sector enterprises, and that the capital structure modifies the relationship between managerial ownership and profitability in this regard.

References

Ahmad, G. N. (2012). Analysis of Financial Distress in Indonesian Stock Exchange. Rev. Interg. Bus. Econ. Res, 2, 6-36.

Alifiah, M., Salamudin, N., & Ahmad. (2012). Prediction of Financial Distress Companies in the Consumer Products Sector in Malaysia. Jurnal UTM 2013, 1-12.

Andrade, & Kaplan. (1998). How costly is financial (not economic) distress?Evidence from highly leveraged transactions that became distressed. The Journal of Finance, 1443-1493.

Andre, O. (2013). Pengaruh Profitabilitas, Likuiditas dan Leverage dalam Memprediksi Financial Distress (Studi Empiris pada Perusahaan Aneka Industri yang terdaftar di BEI. Jurnal UNP.

Ardian, A. V., Andini, R., & Raharjo, K. (2016). Pengaruh Risiko Likuiditas, Rasio Leverage, Rasio Atifitas Dan Rasio Profitabilitas terhadap Rasio Financial Distress. Semarang: Universitas Pandanaran.

Atika, Darmanto, & Handayani, S. R. (2013). Pengaruh Beberapa Rasio Keuangan Terhadap Prediksi Kondisi Financial Distress, Studi Pada Perusahaan Tekstil dan Garmen yang Terdaftar di Bursa Efek Indonesia Periode 2008-2011. Jurnal Administrasi Bisnis, 1-11.

Campello, M., & Giambona, E. (2010). Asset Tangibility and Capital Structure: Working Paper, University of Illinois.

Chen, Y., & Hammes, K. (2002). Capital Structure, Theories and Empirical Result -A Panel Data Analysis. Cergu S Project Reports.

Cosh, A., & Hughes, A. (1994). Size, Financial Structure and Profitability: UK Companies in the 1980s. Journal of Financial Services Research, 18-63.

Cristie, Y., & Fuad. (2015). Analisis Faktor-Faktor yang Mempengaruhi Struktur Modal dengan Ukuran Perusahaan sabagai Variabel Moderating. Diponegoro Journal of Accounting, 1-9.

Cristie, Y., & Fuad. (2015). Analisis Faktor-Faktor yang Mempengaruhi Struktur Modal, dengan Ukuran Perusahaan Sebagai Variabel Moderating. Diponegoro Journal of Accounting, 4, 1-9.

Ebaid, I. (2009). The impact of capital-structure choice on firm performance: empirical evidence from Egypt. The Journal of Risk Finance, 477-487.

Fabozzi, F. J., & Drake, P. P. (2009). Capital markets, financial management, and investment management, 178.

Febriyani, & Srimindarti. (2010). Faktor-Faktor yang Mempengaruhi Struktur Modal Pada Perusahaan-Perusahaan LQ-45 di Bursa Efek Indonesia Tahun 2006-2008. Jurnal Keuangan dan Perbankan, 138-159.

Forsaith, D. M., & McMahon, R. (2002). Equity Financing Patterns Amongst Australian Manufacturing SMEs: Flinders University of South Australia, School of Commerce.

Ghozali, I. (2009). Aplikasi Analisis Multivariate dengan Program SPSS. Semarang: Universitas Diponegoro.

Jodjana, J. J. Nathaniel, S. Pratono, T. (2021). The Effect of Board and Ownership Structure on the Possibility of Financial Distress. Journal of Accounting and Investment, 22(3), 602-624.

Jiming, L., & Wei wei, D. (2011). An Empirical Study on the Corporate Financial Distress Prediction Based on Logistik Model Evidence from Chinas's Manufacturing Industry. International Journal of Digital Content Technology, 5(6).

Joni, & Lina. (2010, Agustus). Faktor-Faktor yang Mempengaruhi Struktur Modal. Jurnal Bisnis dan Akuntansi, 12, 81-96.

Kariani, N. P., & Budiasih, I. (2017). Firm Size sebagai Variabel Pemoderasi Pengaruh Likuiditas, Leverage, Dan Operating CApacity Pada Financial Distress. E-Jurnal Akuntansi Universitas Udayana, 203.

Khairuddin, F., Mashuni, A. W., & Afifudin. (2019). Pengaruh Good Corporate Governance dan Rasio Likuiditas Terhadap Financial distress di Perusahaan Manukatur yang Terdaftar di BEI 2015 2018. E-JRA, 8(01), 142-158.

Lausiri, N. (2022). Pengaruh Rasio Likuiditas, Leverage Dan Profitabilitas Terhadap Kondisi Financial Distress Dengan Kepemilikan Manajerial Sebagai Variabel Moderasi Pada Perusahaan Sektor Barang Konsumsi Yang Terdaftar Di Bursa Efek Indonesia (BEI). Selekta Manajemen: Jurnal Mahasiswa Bisnis & Manajemen, 01(05), 219-234.

Loman, R. K., & Malelak, M. I. (2015). Determinan Terhadap Prediksi Financial Distress pada Perusahaan Manufaktur di Bursa Efek Indonesia. Journal of Research in Economics and Management, 15(2), pp. 371–381.

Maina, L., & Ishmail, M. (2014). Capital Structure and Financial Performance in Kenya: Evidence from Firms Listed at the Nairobi Securities Exchange. International Journal of Social Sciences and Entrepreneurship, 209-223.

Marfungatun, F. (2017). Pengaruh Rasio Profitabilitas, Likuiditas dan Leverage terhadap Kondisi Financial Distress Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia.

Margaritis, D., & Psillaki, M. (2007). Capital Structure and Firm Efficiency. Journal of Business Finance & Accounting, 1447-1469.

Memba, F., & Nyanumba, J. (2013). Causes of financial distress: A survey of firms funded by Industrial and Commercial Development Corporation in Kenya. Interdisciplinary Journal of Contemporary Research in Business, 1171-1185.

Muigai, R. G. (2013). Effect Of Capital Structure on Financial Distress of Non-Financial Companies Listed In Nairobi Securities Exchange, 1-48.

Muthmainnah, A. (2016). Analisis Financial Distress dan Pengaruhnya. Skripsi, 15-20.

Ong, e. (2011). Probabilistic Neural Networks in Bankruptcy Prediction. Journal of Business Research, 67-74.

Pandey, I. M. (2009). Essentials of Financial Management (1st Edition). New Delhi:DN: Vikas Publishing House Ltd.

Park, C. W., & Pincus, M. (2001). Internal Versus External Equity Funding Sources and Earnings Response Coefficients. Review of Quantitative Finance and Accounting, 33-52.

Platt, H., & Platt, M. B. (2002). Predicting Financial Distress. Journal of Financial Service Professionals, 12-15.

Rajan, R. G., & Zingales, L. (1995). What do we know about capital structure? some evidence from international data. The journal of Finance, 1421-1460.

Saleh, A., & Sudiyatno, B. (2013). Pengaruh Rasio Keuangan untuk Memprediksi Probabilitas Kebangkrutan pada Perusahaan MAnufaktur yang Terdaftar di Bursa Efek Indonesia. Jurnal Dinamika Akuntansi, Keuangan dan Perbankan, 82-91.

Sanusi, A. (2011). Metodologi Penelitian Bisnis. Jakarta: Salemba Empat.

Sugiyono. (2012). Metode Penelitian Kuantitatif Kualitatif dan R&D. Bandung: Alfabeta.

Sugiyono, P. D. (2017). Metode Penelitian Bisnis (3rd ed.). Bandung: Alfabeta.

Supriyanto, E., & Falikhatun. (2008). Pengaruh Tangibility, Pertumbuhan Penjualan dan Ukuran Perusahaan Terhadap Struktur Keuangan. Jurnal Bisnis dan Akuntansi, 13-22.

Suprobo, M. D., Mardani, R. M., & Wahono, B. (2016). Pengaruh Likuiditas, Leverage Dan Profitabilitas Terhadap Financial Distress (Pada Perusahaan Transportasi yang Terdaftar di Bursa Efek Indonesia Periode 2011-2015). e-Jurnal Riset Manajemen Unisma.

Weston, J. F., & Copeland, T. E. (1995). Manajemen Keuangan Jilid 1. Terjemahan Jaka Wasana dan Kibrandoko. Jakarta: Binarupa Aksara.

Widarjo, W., & Setiawan, D. (2009). Pengaruh Risiko Keuangan Terhadap Kondisi Financial Distress Perusahaan Otomotif. Jurnal Bisnis dan Akuntansi, XI(2), 107-119.