THE EFFECT OF EARNINGS MANAGEMENT, SALES GROWTH, OPERATING CASH FLOW, AND PROFITABILITY ON FINANCIAL DISTRESS IN CABLE COMPANIES LISTED ON IDX FROM 2019 -2024

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.