Phenomena Affecting Financial Distress through the Springate Method in Indonesia Stock Market

Financial distress is a phenomenon in a company that experiences bankruptcy because of internal and external factors. If the company experiences financial difficulties, investors will reconsider investing in the company. According to the risk of an unstable company's financial condition. Investors can use financial distress as a guideline in choosing a good firm, depending on its operations and financial management. This study aims to predict financial distress through the Springate method. Factors influencing financial distress are operating capacity, sales growth, operating cash flow, leverage, and managerial agency costs. The research is a manufacturing company of goods and consumer industries sector companies listed on the Indonesia Stock Exchange 2019-2021 consisting of 47 companies. The sampling of this research uses purposive sampling and analysis methods by logistic regression analysis. The results of this study indicated that operating capacity, sales growth, operating cash flow, and leverage affect financial distress. Meanwhile, managerial agency cost factors have no effect on financial distress.