Authors :
Nur Prasetyo Aji; Moechammad Nasir; Iyaz Rahma Salsani; Nadea Fitriani
Volume/Issue :
Volume 7 - 2022, Issue 8 - August
Google Scholar :
https://bit.ly/3IIfn9N
Scribd :
https://bit.ly/3qaqnWt
DOI :
https://doi.org/10.5281/zenodo.7047272
Abstract :
Financial distress is a complex problem and
continues to exist because all companies in the world have
the same potential to experience this condition, so many
factors are needed to determine the status of financial
distress as an early warning system in volatile economic
conditions. This study aims to analyze the effect of
leverage, operating cash flow, operating capacity, and
agency managerial costs on financial distress and compare
it between Indonesia and Malaysia. This research was
conducted on real estate and property industry
classification companies listed on the Indonesia Stock
Exchange and the Malaysia Stock Exchange for the 2018-
2020 period. Sampling was done by the purposive sampling
method and yielded 135 data samples. Multiple regression
methods, the classical assumption test, and the paired t test
were used to test the data. The results of this study indicate
that leverage, operating cash flow, and operating capacity
have an effect on financial distress conditions in Indonesia
and Malaysia, while agency managerial costs have no effect
on financial distress conditions. Then, based on the results
of the different paired t tests, it shows that there are
differences in financial distress conditions in Indonesia
before and after the COVID-19 pandemic. On the other
hand, there is no difference between the financial distress
conditions before and after the pandemic in Malaysia
Keywords :
Financial Distress; Leverage; Operating Capacity; Operating Cash Flow; Agency Cost Managerial; Pandemic Covid 19.
Financial distress is a complex problem and
continues to exist because all companies in the world have
the same potential to experience this condition, so many
factors are needed to determine the status of financial
distress as an early warning system in volatile economic
conditions. This study aims to analyze the effect of
leverage, operating cash flow, operating capacity, and
agency managerial costs on financial distress and compare
it between Indonesia and Malaysia. This research was
conducted on real estate and property industry
classification companies listed on the Indonesia Stock
Exchange and the Malaysia Stock Exchange for the 2018-
2020 period. Sampling was done by the purposive sampling
method and yielded 135 data samples. Multiple regression
methods, the classical assumption test, and the paired t test
were used to test the data. The results of this study indicate
that leverage, operating cash flow, and operating capacity
have an effect on financial distress conditions in Indonesia
and Malaysia, while agency managerial costs have no effect
on financial distress conditions. Then, based on the results
of the different paired t tests, it shows that there are
differences in financial distress conditions in Indonesia
before and after the COVID-19 pandemic. On the other
hand, there is no difference between the financial distress
conditions before and after the pandemic in Malaysia
Keywords :
Financial Distress; Leverage; Operating Capacity; Operating Cash Flow; Agency Cost Managerial; Pandemic Covid 19.
