Impact of earning management and business strategy on financial distress risk of Vietnamese companies

Determinant Financial Distress: Evidence Manufacture Company in Indonesia Stock Exchange 2018 – 2022

“…distress. Meanwhile, according to [5] rejects other research where there is no significant relationship between debt to assets on financial distress. For the debt-to-equity ratio according to [19] state that the debt-to-equity ratio has a significant negative effect on financial distress.…”

“…For return on assets according to [7], [8] state that the return on assets ratio has a significant negative effect on financial distress. According to [9]- [11], who state that there is a return on assets ratio has a positive significant effect on financial distress, and according to [5], [12] reject other research where there is no significant relationship between return on assets and financial distress. For return on equity [13] which states that the return on equity ratio has a significant negative effect on financial distress.…”

“…For the current ratio according to [7] explain that the current ratio has a significant negative effect on financial distress. [5], [11], [15] where the current ratio has a positive significant effect on financial distress. [8] rejects other research where there is no significant relationship between current ratio and financial distress.…”

“…In Indonesia, this situation occurred at PT Keramika Indonesia Assosiasi Tbk (KIAS), which experienced losses for 7 (seven) consecutive years. Because in Indonesia there is no definite event to detect financial distress, this study uses a proxy that is supported by the situation above, the researcher uses a proxy from [5] where companies have minus equity (total debt exceeds total assets) and the companies have minus net income for two consecutive years.The independent variable in this study uses financial ratios. Some of the ratios used in this study include profitability ratio, liquidity ratio, solvency ratio, activity ratio, growth ratio and market value ratio [1].…”

“…According to [13], [15] which states that the total assets turnover ratio has a significant negative effect on financial distress. According to [5], [9] which state that the total assets turnover ratio has a significant positive effect on financial distress. Meanwhile, according to [21], it rejects other research where there is no significant relationship between total assets turnover ratio and financial distress.…”