Analysis of the Financial Performance of Companies Facing Bankruptcy Reviewed from the Aspects of Business Risk and Financial Distress

Rakhmat Irwansyah; Yohannes Indrayono; Arief Tri Hardiyanto

doi:10.55927/ijems.v4i2.41

Authors

Rakhmat Irwansyah Pakuan University
Yohannes Indrayono Pakuan University
Arief Tri Hardiyanto Pakuan University

DOI:

https://doi.org/10.55927/ijems.v4i2.41

Keywords:

Financial Performance, Business Risk, Financial Distress, Altman Z-Score, Companies Facing Bankruptcy

Abstract

This research aims to analyze the direct influence of Business Risk and Financial Distress on the Financial Performance of companies facing bankruptcy. The research approach is quantitative with causal methods. The research sample comprised 251 companies that experienced liquidity difficulties and were at risk of bankruptcy during the 2020-2025 period on the Indonesian Stock Exchange. Data analysis was conducted using EViews version 10 to perform path analysis with the t-test. The research results show (1) Business risk affects the financial performance of companies classified as Special Notation Issuers (B/D/E/ED); (2) financial distress has an impact on the financial performance of companies included in the criteria for Special Notation Issuers with the notation B/D/E/ED

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