Article Sidebar

Download
PDF
Statistic
Read Counter : 5 Download : 8

Main Article Content

Abstract

Purpose: This study aims to examine the effect of multidimensional financial ratios on corporate financial health, proxied by the Altman Z-Score, and to analyze the moderating role of institutional ownership in non-cyclical consumer-sector companies listed on the Indonesia Stock Exchange during 2022–2024.


Research Method: This study employs a quantitative research design using panel data regression and Moderated Regression Analysis (MRA). The sample was selected through purposive sampling based on the availability of annual financial reports. The independent variables include liquidity, profitability, solvency, leverage, operational efficiency, and firm size, while corporate financial health is measured using the Altman Z-Score. Institutional ownership is used as a moderating variable.


Results and Discussion: The findings reveal that profitability, measured by return on assets, and operational efficiency, measured by total asset turnover, have a significant positive effect on the Altman Z-Score. Meanwhile, liquidity, solvency, leverage, and firm size do not significantly affect financial health. Institutional ownership weakens the relationship between profitability and the Altman Z-Score.


Implications: The findings suggest that institutional ownership may function as a substitute monitoring mechanism rather than always strengthening financial signals.


Originality: This study contributes by integrating multidimensional financial ratios, the Altman Z-Score, and institutional ownership to assess financial health in Indonesia’s non-cyclical consumer sector.

Keywords

financial distress Altman Z-Score financial ratios institutional ownership non-cyclical consumer goods

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Sastrasasmita, E., Chelsya, C., Kartini, K., & Sundari, S. (2026). The Role of Institutional Ownership Moderation in the Relationship Between Financial Ratios and Financial Distress. Advances in Economics & Financial Studies, 4(2), 124–142. https://doi.org/10.60079/aefs.v4i2.846
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abbas, D. S., Nurfitriani, C., & Rahmawati, A. (2025). Determinant of Financial Distress with Institutional Ownership as Moderation in Indonesian Manufacturing Companies. Jurnal Akuntansi Bisnis Pelita Bangsa, 10(01), 28–39. https://doi.org/10.37366/akubis.v10i01.2601
  2. Aiken, L. S., & West, S. G. (1991). Multiple Regression: Testing and Interpreting Interactions. Sage Publication.
  3. Altman, E. I. (1968). Financial Ratios, Discriminant Analysis and The Prediction of Corporate Bankruptcy. The Journal of Finance, 23(4), 589. https://doi.org/10.2307/2978933
  4. Altman, E. I., Iwanicz‐Drozdowska, M., Laitinen, E. K., & Suvas, A. (2017). Financial Distress Prediction in an International Context: A Review and Empirical Analysis of Altman’s Z‐ Score Model. Journal of International Financial Management & Accounting, 28(2), 131–171. https://doi.org/10.1111/jifm.12053
  5. Anjani, A. D., & Taswan, T. (2023). The Pengaruh Kepemilikan Manajerial, Kepemilikan Institusional, Profitabilitas dan Arus Kas Terhadap Financial Distress (Studi Empiris Pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2020-2021). Journal of Economic, Bussines and Accounting (COSTING), 6(2), 2128–2141. https://doi.org/10.31539/costing.v6i2.5378
  6. Ardiansyah, P. (2024). Pengaruh Likuditas dan Leverage Terhadap Financial Disress pada Perusahaan Sektor Consumer Non-Cyclicals Yang Terdaftar Pada Indeks Saham Syariah Indonesia Di Bursa Efek Indonesia Pada Tahun 2018-2022 Dengan Profitabilitas Sebagai Variabel Intervening. Jurnal Ilmiah Ekonomi Islam, 10(1), 679. https://doi.org/10.29040/jiei.v10i1.11737
  7. Beaver, W. H. (1966). Financial Ratios as Predictors of Failure. Journal of Accounting Research, 71–111.
  8. Betari, F. H., & Hanif, A. (2024). Peran Profitability dalam Memoderasi Determinan Financial Distress (Studi pada Perusahaan Sub Sektor Perdagangan Eceran yang Terdaftar di BEI Tahun 2017-2021). Innovative Technologica: Methodical Research Journal, 2(1), 15. https://doi.org/10.47134/innovative.v2i1.40
  9. Budiarjo, C. I., & Rahayuningsih, D. A. (2023). Faktor-Faktor yang Mempengaruhi Financial Distress. Jurnal Ilmiah Akuntansi dan Keuangan (Jiaku), 2(3), 275–289. https://doi.org/10.24034/jiaku.v2i3.6010
  10. Gaos, R. R., & Mudjiyanti, R. (2021). Pengaruh Corporate Governance dan Firm Size terhadap Financial Distress (Studi Pada Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia Periode 2017-2019). Kompartemen: Jurnal Ilmiah Akuntansi, 19(1), 13. https://doi.org/10.30595/kompartemen.v19i1.11218
  11. Jensen, M. C., & Meckling, W. H. (2019). Theory of the firm: Managerial behavior, agency costs and ownership structure. In Corporate Governance (pp. 77–132). Gower. https://doi.org/http://ssrn.com/abstract=94043Electroniccopyavailableat:http://ssrn.com/abstract=94043http://hupress.harvard.edu/catalog/JENTHF.html
  12. Junaedy, J. (2023). Insolvency Forecasting using model Altman Z-Score and Springate Score Analysis. Advances in Management & Financial Reporting, 1(2), 95–106. https://doi.org/10.60079/amfr.v1i2.113
  13. Komala, F., & Triyani, Y. (2020). Analisis Rasio Keuangan terhadap Financial Distress dengan Struktur Kepemilikan sebagai Variabel Moderasi. Jurnal Akuntansi, 8(2). https://doi.org/10.46806/ja.v8i2.619
  14. Kushermanto, A., Nurfadilah, N., Alisa, I. R., & Mahirun, M. (2024). Institutional Ownership and Financial Distress: The Moderating Effect of Executives with Foreign Experience. Journal of Accounting Research, Organization and Economics, 7(3), 329–341. https://doi.org/10.24815/jaroe.v7i3.36833
  15. Lestari, P., & Imronudin, I. (2024). Analisis Faktor-Faktor yang Mempengaruhi Financial Distress dengan Pendekatan Altman Z-Score pada Perusahaan Consumer Non-Cyclical yang Terdaftar di BEI Tahun 2020-2023. Jurnal Lentera Bisnis, 13(3), 2084–2098. https://doi.org/10.34127/jrlab.v13i3.1286
  16. Ma’dika, S., & Utomo, R. B. (2024). Pengaruh Kepemilikan Asing, Konsentrasi Kepemilikan, Kepemilikan Institusional Terhadap Financial Distress Pada Perusahaan Sektor Property dan Real Estate Yang Terdaftar Di Bursa Efek Indonesia Tahun 2013-2022. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 8(3), 2637–2651. https://doi.org/10.31955/mea.v8i3.4851
  17. Maghfiroh, R. D., Asandimitra, N., & Hartono, U. (2023). Moderation Analysis of Good Corporate Governance on The Effect of Financial Ratio and Market Ratio on Financial Distress. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., 8(7), 115.
  18. Noy, I. (2023). The company’s financial performance in terms of liquidity and profitability. Advances in Management & Financial Reporting, 1(2). https://doi.org/10.60079/amfr.v1i2.99
  19. Peni, A. (2021). Pengaruh Mekanisme Tata Kelola Perusahaan Dan Political Connection Terhadap Financial Distress. Universitas Andalas. http://scholar.unand.ac.id/id/eprint/73224%0A
  20. Platt, H. D., & Platt, M. B. (2002). Predicting corporate financial distress: Reflections on choice-based sample bias. Journal of Economics and Finance, 26(2), 184–199. https://doi.org/10.1007/BF02755985
  21. Rachmawati, D., & Maulana, A. D. (2022). Forecasting Financial Distress of Airline Company: The Impact of Financal Performance. Journal of International Conference Proceedings, 5(4), 85.
  22. Rejeki, W. N., Hidayati, S. A., & Tara, N. A. A. (2023). Kepemilikan Institusional, Likuiditas, Leverage dan Financial Distress: Investigasi Efek Moderasi Profitabilitas. Journal of Economics and Business UBS, 12(3), 1929–1950. https://doi.org/10.52644/joeb.v12i3.262
  23. Ross, L. (1977). The intuitive psychologist and his shortcomings: Distortions in the attribution process. In Advances in experimental social psychology (Vol. 10, pp. 173–220). Elsevier.
  24. Sari, T., & Hermi. (2023). Pengaruh Financial Distress, Leverage dan Prudence terhadap Praktik Manajemen Laba Dengan Kepemilikan. Jurnal Ekonomi Trisakti, 3(2), 3479–3488. https://doi.org/10.25105/jet.v3i2.18085
  25. Sekaran, U., & Bougie, R. (2019). Research methods for business: A skill building approach. John Wiley & Sons.
  26. Setiyoharini, R., & Taufiqurahman, E. (2022). Pengaruh Rasio Keuangan, Kepemilikan Saham, dan Indikator Makroekonomi Terhadap Financial Distress. Jesya (Jurnal Ekonomi dan Ekonomi Syariah), 5(1), 743–756. https://doi.org/10.36778/jesya.v5i1.494
  27. Shleifer, A., & Vishny, R. W. (1997). A Survey of Corporate Governance. The Journal of Finance, 52(2), 737–783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
  28. Stepani, P. N., & Nugroho, L. (2023). Pengaruh Profitabilitas, Likuiditas, Leverage, dan Ukuran Perusahaan terhadap Financial Distress pada Perusahaan Consumer Non-Cyclicals yang Terdaftar di Bursa Efek Indonesia Periode 2019-2021. Journal of Trends Economics and Accounting Research, 3(3), 194–205. https://doi.org/10.47065/jtear.v3i3.551
  29. Udin, S., Khan, M. A., & Javid, A. Y. (2017). The effects of ownership structure on likelihood of financial distress: an empirical evidence. Corporate Governance: The International Journal of Business in Society, 17(4), 589–612. https://doi.org/10.1108/CG-03-2016-0067
  30. Valentina, V., & Tjhai, F. J. (2020). Financial Distress: Rasio Keuangan dan Struktur Kepemilikan pada Perusahaan Non-keuangan. Jurnal Bisnis Dan Akuntansi, 22(2), 347–360. https://doi.org/10.34208/jba.v22i2.818
  31. Widhiadnyana, I. K., & Ratnadi, N. M. D. (2019). The Impact of Managerial Ownership, Institutional Ownership, Proportion of Independent Commissioner, and Intellectual Capital on Financial Distress. Journal of Economics, Business, & Accountancy Ventura, 21(3), 351–360. https://doi.org/10.14414/jebav.v21i3.1233