Effects of Capital Structure, Operating Cash Flow, and Firm Size on Financial Distress in Retailing Companies Listed on the IDX
DOI:
https://doi.org/10.24905/icobis.v2i1.48Keywords:
capital structure, operating cash flow, firm size, financial distress, retailingAbstract
This study examines the effects of capital structure, operating cash flow, and firm size on financial distress among retailing sub-sector companies listed on the Indonesia Stock Exchange (IDX) during 2020–2025. A quantitative approach was applied using secondary data from financial statements. The population comprised 32 companies, and purposive sampling yielded 22 companies with 132 observations. The data were analyzed using descriptive statistics, classical assumption tests, multiple linear regression, t-tests, an Ftest, and the coefficient of determination, with IBM SPSS Statistics version 22. The results show that capital structure has a negative and significant effect on financial distress (coefficient = −0.206; p = 0.000), operating cash flow has a positive and significant effect (coefficient = 1.219; p = 0.000), and firm size has a negative and significant effect (coefficient = −1.231; p = 0.017). Simultaneously, the three independent variables significantly affect financial distress (F = 23.430; p = 0.000). The final model yields an R² of 0.425 and an adjusted R² of 0.407. These findings highlight the importance of financing decisions, operating cash flow management, and asset scale in controlling the risk of financial distress in retailing companies.
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