PENGARUH STRUKTUR MODAL, UKURAN PERUSAHAAN, DAN PERTUMBUHAN PENJUALAN TERHADAP FINANCIAL DISTRESS INDUSTRI APAREL 2019-2023

Abstract

Indonesia's economy is experiencing deflation, marked by declining prices and purchasing power, forcing producers to lower prices, cut production, and lay off employees, which worsens economic conditions. Deflation, triggered by high interest rates, reduced demand, and economic slowdown, increases the risk of financial distress in companies and potentially leads to bankruptcy, though recovery is possible through performance improvements. The apparel & luxury goods industry is particularly impacted, as these secondary need products are deprioritized when purchasing power drops. This study examines the influence of capital structure, firm size, and sales growth on financial distress among 18 companies in the apparel & luxury goods sector listed on the Indonesia Stock Exchange from 2019 to 2023, using purposive sampling and data from annual reports and financial platforms. The findings indicate that capital structure and sales growth individually do not significantly impact financial distress (significance values of 0.4179 and 0.2849, respectively), while firm size does (significance value of 0.0001). Simultaneously, capital structure, firm size, and sales growth significantly affect financial distress (significance value of 0.0000), collectively explaining 80.46% of financial distress, with the remaining 19.54% influenced by other factors outside the study.