Abstract:
This study examines the effect of earnings management, sales growth, operating
cash flow, profitability on financial distress. This study used quantitative methods
with binary logistic regression analysis using SPSS 27 testing tools. This study is
based on secondary data from 8 companies with 48 observations during 2019–2024.
The data was collected from the company annual reports obtained from the
Indonesia Stock Exchange or the companies' official websites.
The results of the study show that earnings management has no effect but is
positive, sales growth has no effect but is positive, operating cash flow has no effect
but is negative, while profitability has significant negative on financial distress. It
means that profitability is an important factor in maintaining the Company's
financial stability to avoid financial distress.
The limitations of this study are that it only focuses on cable companies listed on
the IDX and the research period is only 6 years. Suggestions for future research are
to add other variables not mentioned in this study and expand the scope of
companies in the research.
