Fito Saputra, Tartila Devy

Pengaruh Profitabilitas, Likuiditas, dan Ukuran Perusahaan terhadap Financial Distress pada Perusahaan Sektor Transportasi dan Logistik yang Terdaftar di Bursa Efek Indonesia Periode 2020-2024

Introduction

Pengaruh profitabilitas, likuiditas, dan ukuran perusahaan terhadap financial distress pada perusahaan sektor transportasi dan logistik yang terdaftar di bursa efek indonesia periode 2020-2024. Mengkaji pengaruh profitabilitas, likuiditas, dan ukuran perusahaan terhadap financial distress pada perusahaan transportasi & logistik di BEI 2020-2024. Profitabilitas signifikan kurangi risiko.

Abstract

Financial distress is a condition involving a decline in a company’s financial health that may lead to bankruptcy if not properly addressed. Although it has been widely studied, research specifically analyzing the effects of profitability, liquidity, and company size on financial distress among transportation and logistics companies listed on the Indonesia Stock Exchange in the post-COVID-19 pandemic context remains limited. This study aimed to analyze the effects of profitability, liquidity, and company size on financial distress among transportation and logistics companies listed on the Indonesia Stock Exchange during the 2020–2024 period. The study employed a quantitative approach with a causal research design. The research sample consisted of 25 companies selected through purposive sampling. Data in the form of annual financial statements were collected through documentation and analyzed using panel data regression with the assistance of EViews software. The results showed that profitability, proxied by Return on Equity (ROE), had a significant effect on financial distress, whereas liquidity, proxied by the Cash Ratio, and company size, measured using the natural logarithm (Ln) of total assets, had no significant partial effects. However, simultaneously, profitability, liquidity, and company size had a significant effect on financial distress. These findings strengthen the application of agency theory in explaining the relationship between financial performance and financial distress conditions while extending empirical evidence in Indonesia’s transportation and logistics sector. This study concludes that profitability is the primary factor contributing to the minimization of financial distress risk. Theoretically, this study enriches the literature on the determinants of financial distress, while practically, its findings may serve as a consideration for company management and investors in making financial decisions. Future studies are recommended to include other variables and expand the research objects and period.  

Review

This study investigates the critical issue of financial distress within Indonesia's transportation and logistics sector, specifically examining the impact of profitability, liquidity, and company size in the post-COVID-19 pandemic era. The research provides a timely and relevant contribution, given the sector's strategic importance and its recent economic challenges. Employing a quantitative approach with panel data regression on 25 purposively sampled companies, the methodology is appropriate for analyzing financial statement data. A key strength lies in its finding that profitability, as proxied by Return on Equity (ROE), significantly affects financial distress, while individually, liquidity and company size do not, although they exhibit a significant combined effect. The study effectively elaborates on the importance of profitability as the primary factor in mitigating financial distress, reinforcing its role as explained by agency theory. This enriches the existing literature on financial distress determinants, offering specific empirical evidence from the Indonesian transportation and logistics sector. The practical implications are clearly articulated, suggesting that company management and investors should prioritize profitability metrics when making financial decisions and assessing risk. The nuanced result, where liquidity and company size are not individually significant but contribute significantly in a combined model, sparks interesting questions and offers a more complex understanding than a simple linear relationship might suggest. While the study offers valuable insights, a deeper discussion on the specific reasons behind the non-significant partial effects of liquidity (Cash Ratio) and company size (natural logarithm of total assets) could further strengthen the analysis. Exploring contextual factors unique to the Indonesian transportation and logistics sector that might diminish their individual influence, despite their theoretical importance, would be beneficial. Future research could consider alternative proxies for these variables, incorporate a wider range of macroeconomic or industry-specific control variables, and expand the research period beyond the specified 2020-2024 timeframe to enhance the generalizability and robustness of the findings. Overall, this paper serves as a solid foundation, providing meaningful insights for both academics and practitioners in managing financial health within a vital economic sector.

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