Factors Influencing Corporate Financial Difficulties Noted by Indonesia Stock Exchange

Abstract

The purpose of this research is to know the factors influencing corporate financial difficulties noted by Indonesia Stock Exchange. The analysis method used is the factor analysis. The research uses secondary data from the annual report of all companies listed in the Indonesia Stock Exchange for the period of 2006-2015 with the population of 475 companies and the total of 60 companies as samples using sampling purposive method. The result of the research shows that the factors influencing the financial difficulties are as follow: first factors are the current ratio, loan ratio, return on investment, and price earning ratio; the second factors are based on the inflation rate, and interest rate; third factors are total asset overturn, and net margin profit; and finally the fourth factors are time interest earned ratio and sales growth.