The Effect of Profitability, Company Size, and Leverage on Financial Distress (Empirical Studies on Sub Sector Oil and Gas Listed on the Indonesian Stock Exchanges for the Period 2010-2015)

Abstract

This research aims at observing the Profitability influence, firm size, and Leverage toward: Financial Distress condition. In this research, Profitability is measured by Return On Assets, Firm Size is measured by ln total assets and Leverage is measured by Debt ratio. The research method applied in this research is quantitative method and the technique of analyzing data applied in this research is documentation technique. The population in this research is the Sub-sector oil and gas firm which is listed at Indonesian stock Exchages in 2010-2015 with and collected by purposive sampling technique. The research results reveals that profitability has a negative influence and significance towards financial distress, firm size has a negative influence and significance towards financial distress and leverage has a positive influence and significance towards financial distress.