The Effect of Operating Cash Flow and Company Size on Financial Distress (Empirical Studies on Coal Mining Companies Listed on the Indonesian Stock Exchanges for the Period 2014-2016)

Abstract

In the era of globalization business competition is getting stronger. The inability of companies to face up and anticipate global developments should lead to bankruptcy due to financial distress. This observation is done with the aim to determine the effect of operating cash flow and size of the company to financial distress. The research method used in this research is quantitative method and technical data analysis using documentation technique. In this study, the research population is a coal mining sub-sector company listed on the Indonesia Stock Exchange period 2014-2016 with sampling technique using purposive sampling. Based on the technique, obtained a sample of 15 companies with a span of 3 years, so that obtained 45 samples. Based on the results of the research, operating cash flow has a effect on financial distress and firm size has a effect on financial distress.