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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Main Authors: Nugroho, Mulyanto, Arif, Donny, Halik, Abdul
Format: Article
Language:English
Published: Growing Science 2021-01-01
Series:Accounting
Online Access:http://www.growingscience.com/ac/Vol7/ac_2021_110.pdf
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spelling 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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