The Influence of Current Ratio and Price to Book Value on Financial Distress Conditions in Tourism and Restaurant Hospitality Sub-Sector Service Companies Listed on the Indonesian Stock Exchange
1Arifuddin, 2Safaruddin, 3Erwin Hadisantoso, 4Andi Muhamad Fuad Ramadhan, 5Si Made Ngurah Purnaman, 6Desriyani, 7Nur Rezky Septriani, 8Nurhasanah
1,2,3,4,5,6,7,8Department of Accounting, Faculty of Economics and Business, Halu Oleo University, Indonesia
https://doi.org/10.47191/jefms/v6-i12-09ABSTRACT:
This research aims to determine the effect of current ratio and price to book value on financial distress in companies sub-sector services hotels, tourism and restaurants listed on the Indonesian Stock Exchange. There are 42 companies in Indonesia and the research sample is 10 companies. Through the Stratified Random Sampling sampling method. This study use method analysis linear multiple with use media software SPSS version 26. The results of the research show that current ratio and price to book value simultaneous influential positive and significant to financial distress in sub- sector companies hotels, tourism and restaurants listed on the Indonesian Stock Exchange. This matter means if current ratio and price to book value increase or decrease so influential in a way together to financial distress. Current ratio Partial influential positive and significant to financial distress in the company sub- sector services hotels, tourism and restaurants listed on the Indonesian Stock Exchange. This matter Because the more increasing mark current ratio then the more capable company for fund operational in pay obligation period short. Price to book value Partial influential negative and significant to financial distress in the company sub-sector services hotels, tourism and restaurants listed on the Indonesian Stock Exchange. This matter Because share company valued relatively cheap compared to mark the book, so company fail create mark for holder the shares.
KEYWORDS:
Current Ratio, Price To Book Value, Financial Distress
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