Proceedings of the 5th International Conference on Accounting, Management and Economics, ICAME 2020, 14-15 October 2020, Makassar, Indonesia

Research Article

Media Digitalization, an Analysis of Financial Distress In a Newspaper Company-Evidence from Indonesia

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  • @INPROCEEDINGS{10.4108/eai.14-10-2020.2304270,
        author={Hastuti Hastuti and Kamalah Saadah and Lifia Meilani},
        title={Media Digitalization, an Analysis of Financial Distress  In a Newspaper Company-Evidence from Indonesia},
        proceedings={Proceedings of the 5th International Conference on Accounting, Management and Economics, ICAME 2020, 14-15 October 2020, Makassar, Indonesia},
        publisher={EAI},
        proceedings_a={ICAME},
        year={2021},
        month={2},
        keywords={current ratio total debt to asset ratio return on asset profit margin on sales sales growth ratio financial distress},
        doi={10.4108/eai.14-10-2020.2304270}
    }
    
  • Hastuti Hastuti
    Kamalah Saadah
    Lifia Meilani
    Year: 2021
    Media Digitalization, an Analysis of Financial Distress In a Newspaper Company-Evidence from Indonesia
    ICAME
    EAI
    DOI: 10.4108/eai.14-10-2020.2304270
Hastuti Hastuti1, Kamalah Saadah2,*, Lifia Meilani1
  • 1: Department of Accounting, Bandung State Polytechnic, Ciwaruga, Bandung, Indonesia
  • 2: Department of Accounting, University of Swadaya Gunung Jati, Cirebon, Indonesia
*Contact email: kamalah.mala@gmail.com

Abstract

The media digitalization during the industrial revolution 4.0 poses threats for print media companies. The fall of various print media in the US gives a signal that print media companies in many countries need to be aware of the risk of bankruptcy. Identification of financial distress is necessary to improve their financial condition. This study aimed to obtain empirical evidence about the factors that influence financial distress in one of the leading newspaper companies in Indonesia. The data analysis technique used was multiple linear regression analysis using SPSS. The findings of this study showed that independent variables had influences on financial distress partially and simultaneously, except the sales growth ratio where the sales growth was improved when the company was in low financial distress. Meanwhile, the total debt to asset ratio and profit margin on sales had an opposite influence on most of the previous studies.