The Influence of Financial Ratios, Inflation, Exchange Rates, Managerial Ownership and Institutional Ownership on Financial Distress (Case Study on Food and Beverage Sector Companies Listed on the IDX for the 2018-2022 Period)

Abstract

Financial ratios and financial distress are the main focus of this study. 2) assess how inflation impacts financial difficulties. 3. To investigate how currency fluctuations impactmonetary difficulties. 4) the impact of management ownership on financial difficulties. 5) with the aim of learning how institutional ownership affects financial distress. Researchers rely on quantitative methods derived from secondary sources. This study uses data from 25 food and beverage companies listed on the IDX in 2018-2022. This study uses a purposive sampling approach. For data processing, the researcher in this study used IBM SPSSStatistics 25. Multiple linear regression, hypothesis testing, descriptive statistics, and classical assumption testing are all data analysis tools. According to this study, the Liquidity Ratio alleviates financial difficulties. Financial difficulties are corrected by profitability ratios. The impact of inflation on financial difficulties is negligible. There is no relationship between financial difficulties and exchange rates. In times of financial difficulty, managerial ownership has a detrimental impact. Financial problems are exacerbated by institutional ownership.