Sales growth: capital structure, profits, and capital intensity on financial distress

Abstract

This study aims to test whether capital structure, profits, and capital intensity affect financial distress with sales growth as a moderating variable. This research is quantitative research. The population of this study is infrastructure sector companies listed on the Indonesia Stock Exchange (IDX) and the sample used is the yearly report or financial statements of infrastructure companies. The number of samples obtained was 170 data from 34 companies for 5 (five) years with 19 outliers thus the sample used was 151 data, the data was obtained using puprposive sampling technique. This research was conducted using SPPS 26 to test the data. The results of this study state that profits have a positive and significant effect on financial distress while capital structure and capital intensity have a negative effect on financial distress. Sales growth is able to moderate the relationship between capital structure and financial distress but is unable to moderate the relationship between profit and capital intensity with financial distress. Mutually, capital structure, profit, and capital intensity jointly affect financial distress by 92.1%.