An Analysis Of Company Experience And Macroeconomic Turmoil In Predicting Corporate Distress (An Empirical Study Of Property And Real Estate Companies In Indonesia)

This is the authors' abstract. We don't add key points for this paper.

This study aims to find out and evaluate how company experience and economic turmoil could influence the corporate distress of real estate companies listed on the Indonesia Stock Exchange from 1998 to 2019.Using panel data logistic regression analysis, it was found that experience proxied by company age had a significantly negative effect on corporate distress prediction.Then, macroeconomic turmoil proxied by seeing the fluctuations in economic growth was made as a dummy variable which was determined by 0 for the contraction condition and 1 for the expansion condition.These conditions were seen from the changes or ups and downs of economic growth.This study revealed that macroeconomic turmoil had a significant effect on corporate distress prediction.With a negative coefficient, it means that in the condition of expansion, the probability of a company experiencing corporate distress is smaller.