Saudi Journal of Economics and Finance (SJEF)
Volume-3 | Issue-12 | 601-609
Original Research Article
Analysis of Financial Performance in Predicting Financial Distress in Mining Companies
Diah Iskandar, Hendi Prihanto
Published : Dec. 30, 2019
Abstract
This study aims to test the effect of Current ratio empirically, Return on Assets, Debt Ratio, Dividend Payout Ratio, and Price Book Value on Financial Distress. Causal correlation research methods. The sample selection in this study uses the Purposive Sampling method, so the criteria selected six mining sector companies. The data analysis method used in this study is the panel data regression method and found that the more appropriate model to use is the fixed effect. Based on the calculation results of the random effect model, the results of this study stated Current ratio, Return on Assets affect financial distress while Debt Ratio, Dividend Payout Ratio, Price Book Value do not affect financial distress.