Pengaruh Financial Leverage terhadap Financial Distress pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia

Abstract

This study is aimed to determine the effect of debt to total asset ratio, debt to total equity ratio, long term debt to total asset ratio, andlong term debt to total equity ratio toward the financial distress partially and simultaneously. The population of the study is the financial reports of mining companies listed on the Indonesia Stock Exchange in 2012-2014. The sample method is purposive sampling method, so it obtains 16 samples during the years 2012-2014. The data used are secondary data derived from the financial reports. Method of data analysis of this study is multiple regression analysis. Testing through multiple regression analysis demonstrates that simultaneous independent variables don’t affect the financial distress, while only debt to total asset ratioanddebt to total equity ratio partially affect the financial distress. This result is recommended for the company to analyze and assess their own financial condition.