International Journal of Scientific & Technology Research

Home About Us Scope Editorial Board Blog/Latest News Contact Us
10th percentile
Powered by  Scopus
Scopus coverage:
Nov 2018 to May 2020


IJSTR >> Volume 7 - Issue 1, January 2017 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

How Financial Distress Influence By Firm Size

[Full Text]






Financial Distress, Altman Zís Score, Firm Size, Altman Zís Score



The purpose of this research is to analysis the influence of firm size on financial distress in agricultural companies listed in indonesia stock exchange from 2012 to 2014. Altman Zís Score, net profit margin, cash ratio, and natural logarithm total assets are used as the proxy of financial distress and firm size. Through purposive sampling method, 18 companies were used as a sample in this research. Data used in this research were secondary ones which obtained from companyís financial statement and Indonesian Capital Market Directory (ICMD) from 2012 to 2014. The analysis methods of this research is used multiple regression analysis. The result is showed that firm size have effect but no significant towards financial distress.



[1] Anna Candrawati. (2008). Analysis of Factors Influencing the Success of Turnaround in Businesses Experiencing Financial Distress. Thesis. Diponegoro University.

[2] Altman, E. J. 1968. Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. Journal of Finance (September).

[3] Altman, Edward I. 1983. Corporation Financial Distress - A Complete Guide to Predicting, Avoiding, and Dealing with Bankruptcy. John Wiley & Sons. New York.

[4] Altman and R. Haldeman. 1995. "Corporate Credit Scoring Models: Approaches and Test for Successful Implementation". Journal of Commercial Bank Lending.

[5] Bank Indonesia. 2009. The Indonesian Economic Outlook 2009-2014.

[6] Beaver, W. H. 1966. Financial ratios as predictors of failures. Empirical Research in Accounting, Supplement to the Journal of Accounting Research.

[7] Bernard S. Black, Woochan Kim, Hasung Jang and Kyung-Suh Park. 2013. How Corporate.

[8] Governance Affects Firm Value: Evidence on Channels from Korea, Journal of Corporate Finance, USA. Social Science Electronic Publishing, Inc.

[9] Brigham, Eugene G and Louis C. Gapenski. 1997. Financial Management - Theory and Practice. The Dryden Press. Eight Edition. p. 1034-1067.

[10] Brigham, Eugene F and Phillip R. Daves. 2003 Intermediate Financial Management. Eight Edition. Thomson. South-Western. p.837- 859.

[11] Chirinko.R., Singha.A., 2000.Testing Static Trade Off against Pecking Order Models of Capital Structure: A Critical Comment. Journal of Financial Economics from 58.417 to 425.

[12] Damodaran. 1977 Corporate Finance: Theory and Practice. John Wiley & Sons Incorporated - Business & Economics.

[13] Foster, George. 1986 Financial Statement Analysis. Prentice Hall, Englewood Cliffs, New Jersey.

[14] Gitman, Lawrence. 2006. Principles of Managerial Finance. 11th Edition. Pearson.
[15] Godrey, J., Hodgson, A., Tarca, A., Hamilton, J., & Holmes, S. (2010). Accounting Theory. Milton: John Wiley & Sons Australia, Ltd.

[16] Frank, M. and V. Goyal. 2002. Testing the Pecking Order Theory of Capitl Stucture. Journal of Finance Economics 67.

[17] Hill, T. N., S. E. Perry, and S. Andes. 1996. "Evaluating Firms in Financial Distress: An Event History Analysis". Journal of Applied Business Research 12 (3): 60-71.

[18] Indonesian Institute of Accountants. 2012. Statement of Standard Accounting
Iramani Rr. Prediction of Financial Distress 2008.Model Companies Go Public in Indonesia (Studies in Manufacturing Sector), Journal of Management Applications. Volume 6, Number.I. April, hlm.183-194.

[19] Jensen, M. C. (1986). Agency Cost of Free Cash Flow, Corporate Finance and Takeovers. 98TH Annual Meeting of the American Economic Association (pp. 323-329). American Economic Association.

[20] Kahya and P.Theodossiou. 1999.Predicting Corporate Financial Distress: A Time Series CUSUM Methodology ", Review of Quantitative Finance and Accounting Of V.13 no.4.

[21] Khaira, Amalia Fachruddin. 2014. Analysis of Effect of Capital Structure, Company Size, and Agency Cost to Company Performance. 2011. Journal of Accounting and Finance.

[22] Kieso, Donald E., Weygand, Jerry J., Warfield, Terry D. 2011. Intermediate Accounting. Volume 1 & 2. John Wiley & Sons.

[23] Luciana Spica Almilia, Meliza. 2003. Analysis of Financial Ratios to Predict Financial Distress Condition Manufacturing Companies Listed on the Jakarta Stock Exchange. Journal of Accounting and Auditing Indonesia (JAAI) Vol. 7 No. 2. December ISSN: 1410-2420.

[24] Myers, Stewart C. and Nicholas S. Majluf (1984): Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have: Financiak Journal of Economics 13: pp187-22.

[25] Myers, Stewart C. 1984 "The Capital Structure Puzzle". The Journal of Finance.

[26] Palepu, Krishna G., Healey, Paul M., Bernard, Victor L., 2004. Business Analysis and Valuation Using Financial Statement. Third Edition. Thomson Smith Western.

[27] Platt, Harlan D. and Majorie B. Platt. 2002. Predicting Corporate Financial Distree: Reflections on Choice-based Sample Bias. Journal of Economic and Finance, Illionois.

[28] Sambas Ali Muhidin, Maman Abdurrahman. 2007. Correlation Analysis, Regression and Path in Research. Faithful Reader: Bandung.
[29] Sari, Atmini 2005. Benefits Earnings and Cash Flow Conditions To Predict Financial Distress in the Company textille Mill Products, Apparel, and Other Textile Products which have been registered on the Stock Exchange Jakart. SNA VII: Solo.

[30] Sekaran Uma., & Bougie, R. (2010). Research Methods for Business :. New Jersey: John Wiley and Sons.

[31] Sugiyono. (2003). Statistics For Research. Bandung: Alfabeta.

[32] Sugiyono. (2013). Statistics For Research. Bandung: Alfabeta.

[33] Suharsimi, Arikunto. 2005. Management Research. Seventh Edition. Jakarta: PT Cipta Rhineka

[34] Tanti (2010). Impact of Global Financial Crisis on the Economy Indonesia: IPB
Revelation Widarjo and Doddy Setiawan. 2009. Effect of Financial Condition Financial Ratios Against Distress Automotive Company. Journal of Business and Accountancy.

[35] Wild, John J., Subramanyam, K.R., Hasley, Robert F. 2005. Analysis of Financial Statements Translation Edition 8. Yanivi S. and S. Nurwahyu Bachtiar. Jakarta: Salemba 4.

[36] Wahyuningtya Fitria. (2010). Use of Earnings and Cash Flow Conditions To Predict Financial Distress (Case Study On Non-Bank Companies Listed in Indonesia Stock Exchange Period 2005-2008).

[37] White, Gerald I., Sondhi, Ashwinpaul C., Fried, Dev. 2003. The Analysis and Use of Financial Statement. Third Edition. John Wiley & Sons, Inc.

[38] Yuniarti. 2012. Analysis Of Financial Distress Financial Ratios Basic and Chemical Company Listed on the Stock Exchange. Journal of Economics Vol 6 No 2.

[39] www.bps.go.id

[40] www.idx.co.id

[41] www.data.worldbank.org