Predicting distress: a post Insolvency and Bankruptcy Code 2016 analysis

Arora, Paras; Saurabh, Suman

doi:10.1007/s12197-022-09582-y

Cited by 9 publications

(2 citation statements)

References 14 publications

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“…For large companies, financial distress results in significant losses, especially for investors, creditors, and stakeholders. This is by research conducted by Jannah & Sartika (2022) and Arora & Saurabh (2022). The results of this study also support the agency theory carried out by Jensen & Meckling (1976), which that contracts between parties who give authority (principals) to parties who obtain authority (agents) by delegating decision-making authority to agents, one of which is the policy of obtaining financing/ debt.…”

Section: Discussionsupporting

confidence: 81%

“…The large company quickly gets access to funding from the capital market (Jannah & Sartika, 2022). For large companies, financial distress significantly results in significant losses for investors, creditors, and stakeholders, impacting firm value (Arora & Saurabh, 2022). Hanafi et al (2021) state that management must apply the precautionary principle in managing finances because it will impact the risk of financial distress.…”

Section: Firm Size and Firm Valuementioning

confidence: 99%

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Financial Distress, Earnings Management, and Leverage Effect on Firm Value with Firm Size as a Moderation Variable

Agustina

Malau

2023

IJSSR

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The study is aimed to analyze whether financial distress, earnings management, and leverage affects a firm value with firm size as a moderation variable. The method used in this study is multiple linear analysis. Samples engaged 144 public companies in manufacturing sectors listed in Indonesia Stock Exchange (Bursa Efek Indonesia) period 2017-2021. The result of the research revealed that earnings management positively affected firm value, firm size strengthened the relationship between financial distress with firm value, and firm size strengthened the relationship between earnings management and firm value. The study implies that companies can manage their resources and provide project financial statements based on applicable accounting standards to increase firm value. Furthermore, investors and creditors can consider the prospect of business and future projections of the issuer's fundamentals

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Section: Discussionsupporting

confidence: 81%