Abstract:
This study aims to determine how these variables influence the financial distress in manufacturing companies (empirical studies on the chemcal and basic industry sectors listed on the indonesian stock exchange).
This study uses secondary data that data obtained from studies conducted by collecting documentation secondary data from the ICMD 2010 and the official website of the Indonesian Stock Exchange, www.idx.co.id. Secondary data relating to the company’s annual financial report. In this study, population amounted to 61 comapnies and using the sampling method judgemental sample to obtain a sample company by 23 companies. The method of analysis used in this study is the method of multiple linear regression and processed through computer programs SPPS .16 (Statistical Package for Social Sciences). From the result of testing that has been done, the simultaneous regression test (F-test) showed that variable capital structure policy, institutional ownership and profitability simultaneously have a significant impact on financial distress. And the result of the partial test (t-test) showed that variables capital structure policy in partial have a positive and significant impact on financial distress while variable instituional ownership and profitability in partial do not have a significat effect on financial distress. The magnitude of the effect caused by (R2) by the capital structure policy, institutional ownership and profitability variables together to financial distress variable are at 20,2% while the remaining 79,8% is influenced by other variables were not examined in this study.
