Corporate Turnaround Analysis for companies experiencing Financial Distress during the Financial Crisis

Abstract

This study aims to examine the factors that can affect the ability of companies experiencing financial distress to perform Corporate Turnover. The factors tested in the study were Severity, Firm Size, Free Assets, Assets Retrenchment, Expenses Retrenchment, and CEO turnover. This study uses a logistic regression testing tool to take the objects of companies listed on the Indonesia Stock Exchange. The sample was determined using the Purposive Sampling Method. Based on the results of logistic regression testing, the data from this study fit the model and is based on the feasibility test of the regression model. Therefore, this research model can analyze the problem of this research. Partial test results by observing the value of the Wald test found that company size, Free Assets, and Expenses Retrenchment affect the ability of companies experiencing financial distress to perform corporate turnaround. While Severity, Assets Retrenchment, and CEO turnover cannot affect. Simultaneously based on the G test, all the variables tested in this study affected the company's ability to perform corporate turnaround