ARTICLE
TITLE

The Effect of Profitability and Leverage on Financial Distress with Inflation as Moderating

SUMMARY

The purpose of this study was to determine the effect of profitability on financial distress and leverage on financial distress, as well as to determine whether inflation moderates the relationship between profitability and financial distress, and to moderate the relationship between leverage and financial distress in mining companies and consumer goods industry listed on the IDX in 2016-2019. This study uses secondary data in the form of annual financial reports and other supporting sources. The sampling technique used purposive sampling method as many as 48 out of 100 companies in the mining sector and consumer goods industry listed on the IDX. The analysis technique used is the Moderating Regression Analysis (MRA) test. The results showed that the variable profitability and leverage in 2016-2019 had a significant effect simultaneously and partially. This study also shows the results that inflation does not moderate the effect of profitability on financial distress and moderates the effect of leverage on financial distress.

 Articles related

Rizky Adzan Maulana,Elis Mediawati    

This study aims to determine the effect of intellectual capital disclosure and profitability on company value. The sampling method used is purposive sampling with a sample of 67 companies in the manufacturing sector in the period 2018 to 2020. The h... see more


Dewi Cahyani Pangestuti    

The existence of banks is very important for a country because it plays a role in encouraging the economy of a country where banks provide lines of financing, savings, and lending so that, in the end, people's standard of living can increase. To be able ... see more


Taudlikhul Afkar    

This study discusses to analyze the influence of non performing financing (NPF) from financing for the results seen from Mudaraba and Musharaka contracts to the level of profitability of Islamic banks in Indonesia. The results of this study indicate inco... see more


Iin Emy Prastiwi,Anik Anik    

This study aims to determine the effect of Islamic bank financing diversification based on economic sectors and based on the type of use on profitability. This study uses financing data for Islamic Banks and Islamic Business Units in 2014-2018. The data ... see more


Wahyudin Maguni, Beti Mulu, H.Muh. Turmudi, Husain Insawan, Fitratin Ni'mah    

Profitability Ratio is a ratio to measure the level of profit obtained by a company. One of the Islamic banks in Indonesia since 1992, namely Bank Muamalat Indonesia (BMI). Based on financial report data for 2014-2016, BMI experienced a decline in assets... see more

Revista: Al-Ulum