Predicting the Risk of Financial Distress Using Intellectual Capital and Financial Ratio

Nabilla Fitri Mellin Timoty (), Nurcahyono Nurcahyono, Khansa Yasaputri and Dyah Ekaari Sekar Jatiningsih
Additional contact information
Nabilla Fitri Mellin Timoty: Universitas Muhammadiyah Semarang, Department of Accounting
Nurcahyono Nurcahyono: Universitas Muhammadiyah Semarang, Department of Accounting
Khansa Yasaputri: Universitas Muhammadiyah Yogyakarta, Department of Accounting
Dyah Ekaari Sekar Jatiningsih: Universitas Muhammadiyah Yogyakarta, Department of Accounting

A chapter in Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022), 2023, pp 228-245 from Springer

Abstract: Abstract The economic downturn was resulting from the Covid-19 pandemic impacted financial difficulties in financial sector companies. Financial sector companies that have negative equity and were delisted from the IDX. So it is essential to know which indicators can be used to identify financial distress early and avoid bankruptcy. The goal to be achieved from the results of this study is to empirically determine the influence of the audit committee, intellectual capital, operating cash flow, and leverage on financial distress moderated by independent commissioners in financial sector companies in Indonesia. This study uses a quantitative approach This study uses a quantitative approach. The unit of analysis for this research is the financial sector from 2017 to 2021, with 235 observations. Using a purposive sampling technique, 57 companies were studied. The analytical method used is Moderated Regression which is processed using the SPSS 26 application. The results show that the audit committee and intellectual capital positively influence financial distress, while operating cash flow and leverage variables negatively affect financial distress. The study results show that the independent commissioner can moderate the effect of the dependent variable on financial desperation.

Keywords: Financial distress; audit committee; intellectual capital; operating cash flow; leverage; independent commissioner (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-154-8_22

Ordering information: This item can be ordered from
http://www.springer.com/9789464631548

DOI: 10.2991/978-94-6463-154-8_22

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().