The Effect of Liquidity, Leverage, and Profitability on Financial Distress (Case Study of Property and Real Estate Companies on the IDX 2017-2019)

ABSTRACT : Financial distress is a condition of financial difficulties experienced by a company. Companiesmust be able to predict the possibility of financial difficulties in order to avoid potential bankruptcy. This studyaims to obtain empirical evidence regarding the effect of liquidity, leverage, and profitability on financialdistress in Property and Real Estate companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2019period. The sampling technique in this study used purposive sampling with the criteria as companies listedconsecutively on the Indonesia Stock Exchange for the period 2017-2019. Companies that meet the criteria to besampled in this study are as many as 53 companies. The analysis technique used in this research is logisticregression analysis. The results of this study indicate that liquidity has a significant negative effect on financialdistress, leverage has a significant positive effect on financial distress, and profitability has a significantnegative effect on financial distress.

Keywords: Financial distress, liquidity, leverage, profitability.