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

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.

Keywords: Altman’s Z-Score; Inflation; Price to Book Value; Return On Asset; Total Assets.