Financial Indicators and Family Ownership: Key Predictors of Corporate Financial Distress

Abstract

This study examines the influence of activity ratios, leverage, valuation, and family ownership on financial distress among manufacturing firms in Indonesia. This research highlights the importance of early detection of financial distress to prevent bankruptcy, which can have widespread effects on stakeholders. The study employs a quantitative method using secondary data from 107 companies listed on the Indonesia Stock Exchange (IDX) for the period 2018-2022. The analysis is conducted using a discriminant model. The findings indicate that the ratios of Sales to Total Assets (STA), Market Value of Equity to Book Value of Total Liabilities (MVEBVTL), market capitalization, and family ownership can be used to predict corporate financial distress. The discriminant model applied has an accuracy rate of 82.4%. This study provides a significant contribution to identifying both financial and non-financial factors that affect the condition of financial distress, especially in family-owned businesses. Keywords: Activity Ratio; Leverage; Valuation; Family Ownership; and Financial Distress.Penelitian ini mengkaji pengaruh rasio aktivitas, leverage, valuasi, dan kepemilikan keluarga terhadap financial distress pada perusahaan manufaktur di Indonesia. Latar belakang studi ini adalah pentingnya deteksi dini terhadap financial distress untuk mencegah kebangkrutan yang berdampak luas pada pemangku kepentingan. Penelitian menggunakan metode kuantitatif dengan data sekunder dari 107 perusahaan yang terdaftar di Bursa Efek Indonesia (BEI) periode 2018-2022. Analisis dilakukan menggunakan model diskriminan. Hasil penelitian menunjukkan bahwa rasio Sales to Total Assets (STA), Market Value of Equity to Book Value of Total Liabilities (MVEBVTL), kapitalisasi pasar, dan kepemilikan keluarga dapat digunakan untuk memprediksi financial distress perusahaan. Model diskriminan yang digunakan memiliki tingkat akurasi sebesar 82,4%. Penelitian ini memberikan kontribusi signifikan dalam mengidentifikasi faktor-faktor keuangan dan non-keuangan yang mempengaruhi kondisi financial distress, terutama pada perusahaan keluarga. Kata Kunci: Rasio Aktivitas; Leverage; Valuasi; Kepemilikan Keluarga; dan Financial Distress.