FACTOR AFFECTING FINANCIAL DISTRESS IN FOOD AND BEVERAGE COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

The covid-19 pandemic has an effect on business performance as well as the Indonesian economy. The company's losses resulted in numerous other businesses going bankrupt and experiencing financial distress. This study aims to examine factors that can affect financial distress conditions. The factors tested in the study are sales growth, institutional ownership, debt to equity, working capital turnover and return on asset. This study uses multiple regression analysis testing tools. This study took the population and sample data of companies listed on the Indonesia stock exchange from 2019-2021. The data used in this study are secondary data obtained from the company's published financial statements. The sample was determined by purposive sampling based on the criteria set and obtained from as many as 9 companies where the research was conducted for 3 years. The results of data analysis using multiple regression analysis state that the variables that have a significant effect on financial distress are institutional ownership variables, working capital turnover and return on assets which have a significant effect with a profitability level < 0.05. In contrast, sales growth and debt to equity do not significantly affect financial distress. This research will significantly assist investors and managers in making decisions. Provide information to users of financial statements or company stakeholders regarding what financial ratios can influence and be a factor in financial distress conditions.