The Impact of Firm-Specific and Macroeconomic Factors on Financial Distress Risk: A Case Study from Turkey

Ceylan, İşıl Erem

doi:10.13189/ujaf.2021.090325

Cited by 17 publications

(26 citation statements)

References 26 publications

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“…This is like several studies conducted in different countries, including Ikpesu (2019), Dwiantari and Meaning (2021), Rafatnia et al (2021). In contrast to the results of research by Saputri and Asrori (2019), Ceylan (2021) shows that there is a positive relationship between liquidity and financial distress. Based on theoretical considerations and previous research which showed different results, however, companies with low liquidity tended to increase the likelihood that the company would experience financial distress because the company did not have sufficient funds to pay short-term obligations.…”

Section: Liquiditycontrasting

confidence: 94%

“…Several previous studies conducted in different countries showed a negative relationship between profitability ratios and financial distress, namely in the research of Dwiantari and Artini (2021) in Indonesia, Ikpesu (2019) in Nigeria, Kamaludin et al (2019) in Malaysia, Rafatnia et al (2021) in Iran, and Charalambakis and Garrett (2019) in Greece. However, different results are shown by the research of Saputri and Asrori (2019) in Indonesia, Ceylan (2021) in Turkey. However, in signaling theory that high profitability reflects that the company can operate profitably to avoid the risk of financial distress.…”

Section: Profitabilitymentioning

confidence: 90%

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The phenomenon of financial distress of manufacturing companies in Indonesia during the Covid-19 Pandemic

Handayati

Izzalqurny

Fauzan

et al. 2022

IJRBS

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The purpose of this study is to examine the differences in the value of the financial distress of manufacturing companies before and after the Covid-19 pandemic, as well as to examine the determinants that affect the financial distress of manufacturing companies before and after the Covid-19 pandemic. This study is a quantitative study with the population in this study namely manufacturing companies in Indonesia. The sample is 1005 Firm Years in manufacturing companies in Indonesia. These Manufacturing Companies were taken from 2016-2021, but we divided the sample into 2 categories, namely 2016-2019, namely in the pre-pandemic period as many as 653 firm years, and during the pandemic as many as 352 firm years. The dependent variable used in this study is financial distress, measured by the O-Score Model. Furthermore, the independent variables are profitability using ROA, liquidity using the current ratio, and leverage using the Debt to Assets Ratio. The test results show no difference between the financial distress of manufacturing companies in Indonesia before and during the pandemic. During the pandemic, financial ratios became more considered in predicting financial distress than before the pandemic. The role of profitability is a factor that impacts financial distress is more impactful in the pre-pandemic period. The role of liquidity being a factor that impacts financial distress is more impactful during the pandemic. Leverage can also be a good indicator in predicting financial distress both in the pre-pandemic and during the pandemic.

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Section: Liquiditycontrasting

confidence: 94%

Section: Profitabilitymentioning

confidence: 90%

The phenomenon of financial distress of manufacturing companies in Indonesia during the Covid-19 Pandemic

Handayati

Izzalqurny

Fauzan

et al. 2022

IJRBS

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“…Apabila inflasi tinggi dan kemungkinan perusahaan bangkrut semakin kecil maka akan tersampaikan isyarat yang meyakinkan untuk investor dalam berinvestasi di perusahaan. Penelitian Pertiwi (2018), Ceylan (2021), dan Taufik & Sugianto (2021) menyatakan kenaikan inflasi dapat menurunkan kemungkinan kebangkrutan sebuah perbankan. H 2 : Inflasi berpengaruh positif dan signifikan terhadap financial distress.…”

Section: Pengembangan Hipotesisunclassified

“…Sehingga apabila nilai perusahaan mampu memoderasi serta memperkuat pengaruh inflasi terhadap financial distress maka akan tersampaikan isyarat yang meyakinkan untuk investor dalam berinvestasi di perusahaan. Sejalan dengan penelitian Pertiwi (2018), Ceylan (2021), dan Taufik & Sugianto (2021) yang menyatakan bahwa naiknya tingkat inflasi akan membuat kemungkinan terjadinya financial distress semakin mengecil, serta penelitian Nisak (2021) dan Yulitasari & Yulistina (2019) menyatakan kenaikan nilai perusahaan akan mempengaruhi mengecilnya kemungkinan terjadinya financial distress. Jika dilihat maka kedua variabel sama-sama mempunyai pengaruh yang positif serta siginifikan terhadap financial distress.…”

Section: Pengembangan Hipotesisunclassified

Pengaruh Profitabilitas, Makroekonomi, Firm Size Terhadap Financial Distress Dengan Nilai Perusahaan Sebagai Variabel Moderating

Heliani

Elisah

2022

Owner

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One of the key contributors to the country's economic health is the banking industry. From 2017 to 2021, there were eight banking companies that were liquidated. So it is necessary to anticipate from the beginning so that bankruptcy does not occur. One way to see if a company is in financial distress can be done using the Altman's Z-Score method. This investigation was carried out with the intention of measuring and knowing the extent to which profitability, macroeconomic, and firm size ratios are proxied by Return On Assets (ROA), inflation, and total assets to financial distress using the Altman's Z-Score method through a moderating variable in the form of firm value proxied by PBV. This is a quantitative study that relies on secondary data gathered through a literature review. The population of this study is the whole banking industry in Indonesia, with a total sample of 23 enterprises acquired using the purposive sampling approach. This study employs panel data using the Moderated Regression Analysis (MRA) approach, which is carried out using Econometric Views (Eviews) version 10. According to the findings of this study, profitability had a favorable influence on financial distress, but macroeconomics, business size, and firm value had no effect. Meanwhile, firm value is deemed unable to moderate the independent variable on the dependent variable in this study, so it is unknown whether firm value increases or weakens the independent variable on the dependent variable.

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“…In general, the results of research that investigates the relationship between macroeconomic variables and the stock market in emerging market countries, such as those conducted by Marane, B., & Asaad, Z. (2021) in India; Moradi (2021) in Iran; Bui & Nguyen (2021) in Vietnam; Gu, Zhu, & Wang (2022) in China; Naseer, et.al (2021) in Pakistan; Ceylan (2021) in Turkey; Gautam & Gautam (2021) in Nepal.…”

Section: Introductionmentioning

confidence: 99%

Moderation Of Percapita Income On Macroeconomic Effects On Stock Return

2023

Central European Management Journal

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Arbitrage Pricing Theory is a theory that has been tested by various researchers, the majority of the results show a similarity, namely asset pricing can be predicted by looking at macroeconomic indicators. The ever-changing macroeconomy results in investors' profits in making investments also changing, on that basis it is necessary for investors to properly adjust to macroeconomic conditions in making investment decisions. Interestingly, empirically it shows that there are differences in patterns of influence in emerging market countries and in developed countries, this encourages researchers to prioritize the moderating variable, namely per capita income. This study uses macroeconomic data, per capita income, and stock returns in Indonesia during 1998-2020. The results of the study show that with moderation of per capita income there is an increase in the effect of macroeconomics on stock returns. This indicates that investors also need to study the development of per capita income in Indonesia, as an effort to increase optimal returns.

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The Impact of Firm-Specific and Macroeconomic Factors on Financial Distress Risk: A Case Study from Turkey

Cited by 17 publications

References 26 publications

The phenomenon of financial distress of manufacturing companies in Indonesia during the Covid-19 Pandemic

The phenomenon of financial distress of manufacturing companies in Indonesia during the Covid-19 Pandemic

Pengaruh Profitabilitas, Makroekonomi, Firm Size Terhadap Financial Distress Dengan Nilai Perusahaan Sebagai Variabel Moderating

Moderation Of Percapita Income On Macroeconomic Effects On Stock Return

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