Profitability moderate the effect of operating capacity and intellectual capital on financial distress

I Dewa Gde Agung Winata; I. G. A. N. Budiasih

doi:10.21744/ijbem.v5n3.1922

Authors

I Dewa Gde Agung Winata
agungwinata96@gmail.com
Fakultas Ekonomi dan Bisnis Universitas Udayana, Bali, Indonesia
I. G. A. N. Budiasih Fakultas Ekonomi dan Bisnis Universitas Udayana, Bali, Indonesia

Keywords:

financial distress, intellectual capital, moderated regression analysis (MRA), operating capacity, profitability

Abstract

Financial distress is the stage of declining financial conditions experienced by the company before the occurrence of bankruptcy or liquidity. This study aims to examine the effect of operating capacity and intellectual capital on financial distress with profitability as a moderating variable. The population in this study are property and real estate companies listed on the Indonesia Stock Exchange. The sample in this study amounted to 12 property and real estate companies during the 2016-2020 period. Sampling using purposive sampling method. The analytical tools used in this research are multiple linear analysis and Moderated Regression Analysis (MRA). Based on the results of the study, it shows that operating capacity has a positive effect on financial distress, intellectual capital has a negative effect on financial distress, profitability can moderate the effect of operating capacity on financial distress and profitability cannot moderate the influence of intellectual capital on financial distress.

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