The effect of financial distress on stock returns, through systematic risk and profitability as mediator variables
This study aims to determine the relationship between financial distress and systematic risk, the relationship between financial distress and profitability, the relationship between systematic risk and stock returns, the relationship between profitability and stock returns, and the indirect...
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Growing Science
2021-01-01
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Series: | Accounting |
Online Access: | http://www.growingscience.com/ac/Vol7/ac_2021_110.pdf |
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doaj-1b098c7e769f4b7493f9ca324d3c7ac12021-06-04T08:42:23ZengGrowing ScienceAccounting2369-73932369-74072021-01-01771717172410.5267/j.ac.2021.4.026The effect of financial distress on stock returns, through systematic risk and profitability as mediator variablesNugroho, MulyantoArif, DonnyHalik, Abdul This study aims to determine the relationship between financial distress and systematic risk, the relationship between financial distress and profitability, the relationship between systematic risk and stock returns, the relationship between profitability and stock returns, and the indirect effect between financial distress and stock returns through systematic risk and company profitability. by collecting data on the Indonesia Stock Exchange on chemical companies and the element industry in 2018-2020. This study was conducted to find out the answers to the impact caused by the global economic turmoil. Using the PLS-SEM method and four latent variables, which are divided into one endogenous variable, two moderating variables and one exogenous variable, it is hoped that it can provide value for the statistical calculation activities carried out. This study uses a quantitative descriptive method with two moderating variables that link financial distress and stock returns. This study produces a specific indirect effect; the financial distress variable significantly impacts Stock Return through systematic risk and profitability variables with a p-value < 0.05. The main finding of this study is the significant impact of world economic turmoil that must be faced by creating systematic risk to convince. Investors and provide education to potential investors.http://www.growingscience.com/ac/Vol7/ac_2021_110.pdf |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Nugroho, Mulyanto Arif, Donny Halik, Abdul |
spellingShingle |
Nugroho, Mulyanto Arif, Donny Halik, Abdul The effect of financial distress on stock returns, through systematic risk and profitability as mediator variables Accounting |
author_facet |
Nugroho, Mulyanto Arif, Donny Halik, Abdul |
author_sort |
Nugroho, Mulyanto |
title |
The effect of financial distress on stock returns, through systematic risk and profitability as mediator variables |
title_short |
The effect of financial distress on stock returns, through systematic risk and profitability as mediator variables |
title_full |
The effect of financial distress on stock returns, through systematic risk and profitability as mediator variables |
title_fullStr |
The effect of financial distress on stock returns, through systematic risk and profitability as mediator variables |
title_full_unstemmed |
The effect of financial distress on stock returns, through systematic risk and profitability as mediator variables |
title_sort |
effect of financial distress on stock returns, through systematic risk and profitability as mediator variables |
publisher |
Growing Science |
series |
Accounting |
issn |
2369-7393 2369-7407 |
publishDate |
2021-01-01 |
description |
This study aims to determine the relationship between financial distress and systematic risk, the relationship between financial distress and profitability, the relationship between systematic risk and stock returns, the relationship between profitability and stock returns, and the indirect effect between financial distress and stock returns through systematic risk and company profitability. by collecting data on the Indonesia Stock Exchange on chemical companies and the element industry in 2018-2020. This study was conducted to find out the answers to the impact caused by the global economic turmoil. Using the PLS-SEM method and four latent variables, which are divided into one endogenous variable, two moderating variables and one exogenous variable, it is hoped that it can provide value for the statistical calculation activities carried out. This study uses a quantitative descriptive method with two moderating variables that link financial distress and stock returns. This study produces a specific indirect effect; the financial distress variable significantly impacts Stock Return through systematic risk and profitability variables with a p-value < 0.05. The main finding of this study is the significant impact of world economic turmoil that must be faced by creating systematic risk to convince. Investors and provide education to potential investors. |
url |
http://www.growingscience.com/ac/Vol7/ac_2021_110.pdf |
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