Predicting Trigger Factors of Financial Distress

A phase of financial difficulty isa company's financial circumstances that can be detected pior to bankruptcy. A business is deemed bankrupt if it is unable to meet its obligations and has a declining financial performance. So from that, this research is aimed at predicting the impact of capital structure, profitability, and investment decisions on financial distress. The form of research used is associative research that is a kind of quantitative. Data analysis techniques use classical assumption tests, multiple linear regression data analysis, determination coefficients, and hypothesis testing. Data will be processed and calculated using software assistance in the form of Statistical Product and Service Solution (SPSS) version 26. The research objects used are companies
in the industrial sector listed on the Indonesian Stock Exchange for the period from 2018 to 2022. Sampling using
purposive sampling techniques that obtained samples of as many as 20 companies with a total of 100 data. Data
collection techniques use documentary observation techniques by looking at financial statements, financial report
records and company annual reports. The study found that capital structure and profitability have a positive effect
on financial distress. Meanwhile, investment decisions have no bearing on financial distress.