Determinants Of Financial Distress: The Role Of Receivable Turnover, Audit Committee Size, Operating Capacity, And Real Interest Rate In The Indonesian Industrial Sector

Abstract

Purpose – This study aims to examine and analyze the influence of Receivable Turnover, Audit Committee Size, Operating Capacity, and Real Interest Rate on Financial Distress in industrial sector companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period.

Design/methodology/approach – This research employs quantitative panel data obtained from industrial sector companies listed on the Indonesia Stock Exchange (IDX) over the 2022–2024 period. Hypothesis testing is conducted using multiple regression analysis with the Random Effects Model.

Findings – The results indicate that receivable turnover, audit committee size, and the real interest rate do not significantly explain variations in financial distress during the observation period. In contrast, operating capacity has a positive and statistically significant effect on financial distress.

Research limitations/implications – This study is limited to a three-year observation period and selected financial and governance variables. Practically, the findings provide an important signal for investors and managers to focus not only on sales activity but also on the efficiency and profitability quality of asset utilization when assessing financial distress risk

 JEL : G33, G34, E43.