Survival Analysis: The Impact of Key Factors on Financial Distress and Longevity of Real Estate Firms Listed on the Indonesia Stock Exchange, with Inflation as a Moderating Variable (2014–2023)

Authors

DOI:

https://doi.org/10.14414/tiar.v15i1.4917

Keywords:

survival analysis, financial distress, financial ratios, moderating variable

Abstract

This study uses a quantitative approach to examine the factors influencing financial distress among companies in the Property Sector listed on the Indonesia Stock Exchange (IDX) from 2014 to 2023. The research focuses on four key financial ratios: Return on Equity (ROE), Current Ratio (CR), Debt to Assets Ratio (DTA), and Total Assets Turnover (TATO), with inflation included as a moderating variable. A purposive sampling method was used to select 36 companies for the study. Survival analysis was conducted using STATA software to analyzed the data. The results reveal that ROE has a significant negative effect on financial distress, indicating that higher ROE reduces the likelihood of financial distress. In contrast, CR has a significant positive effect, suggesting that a higher current ratio is associated with increased financial distress. DTA and TATO were found to have no significant impact on financial distress. Additionally, inflation was found to moderate the relationship between ROE and financial distress, worsening financial distress when ROE is poorly managed. However, inflation does not significantly affect CR, DTA, or TATO. These findings emphasize the importance of efficient financial management, particularly concerning ROE, and the role of inflation in influencing financial distress.

Author Biographies

Sri Dwi Ari Ambarwati, Universitas Pembangunan Nasional Veteran Yogyakarta

Sri Dwi Ari Ambarwati is an Associate Professor at the Faculty of Economics and Business, UPN "Veteran" Yogyakarta, Indonesia. She earned her bachelor's degree in Management from the same university in 1996 and completed her master's degree in Management Science at Universitas Gadjah Mada in 2002. In 2021, she obtained her doctoral degree from the Doctoral Program in Economics (PDIE) at Universitas Sebelas Maret. Her research interests include business and corporate financial management, behavioral finance, and the adoption of technology-based services. She has actively published in several reputable journals and international proceedings, including the Review of Integrative Business and Economics Research, Journal of Law and Sustainable Development, International Journal of Economics, Business and Accounting Research, Springer publications, and conferences such as ICARSESS, AIP Conference Proceedings, and ICITCEE. Author contact details: Faculty of Economics and Business; UPN “Veteran” Yogyakarta; Jl. Padjajaran SWK 100, Lingkar Utara, Condong Catur, Indonesia; +6287738864871; Email: dwiari.ambarwati@upnyk.ac.id ORCID ID: 0009-0006-0082-6314

Slamet Trisno Haryono, Universitas Pembangunan Nasional Veteran Yogyakarta

Slamet Trisno Haryono is a lecturer at the Faculty of Economics and Business at Universitas Pembangunan Nasional Veteran Yogyakarta, Indonesia. He earned his bachelor's degree in economics (1985) in the Management study program from Universitas Pembangunan Nasional Veteran Yogyakarta and his master's degree in national resilience studies from Universitas Gadjah Mada Yogyakarta, Indonesia (1995). His current research mainly focuses on business/corporate financial management. He has published academic articles in reputable journals, namely Review of Integrative Business and Economics Research, International Journal of Economics Business and Accounting Research, ICARSESS indexed international proceedings. Author contact details: Faculty of Economics and Business; Universitas Pembangunan Nasional Veteran Yogyakarta; Jl. Padjajaran SWK 100, Lingkar Utara, Condong Catur, Indonesia; +6281328798888; Email: stharyono@yahoo.co.id ORCID ID: 0000-0002-6891-6838

Ida Ayu Fatmayuni, Universitas Slamet Riyadi Surakarta

Ida Ayu Fatmayuni is a lecturer at the Faculty of Economics and Business, Universitas Slamet Riyadi Surakarta, Indonesia. She earned her Bachelor’s degree in Management from Universitas Janabadra Yogyakarta in 2021, and completed her Master’s degree in Management at Universitas Pembangunan Nasional Veteran Yogyakarta in 2023. Her current research focuses on financial management and business management. She is actively involved in teaching, academic development, and contributing to research and scholarly publications. Author contact details: Faculty of Economics and Business; Universitas Slamet Riyadi Surakarta; Jl. Sumpah Pemuda No.18, Kadipiro, Banjarsari, Surakarta, Central Java 57136, Indonesia; +6285157133571; Email: ida.ayu.fatmayuni@unisri.ac.id ; ORCID ID: 0009-0007-6408-3158

Gunawan Nusanto, Universitas Pembangunan Nasional Veteran Yogyakarta

Gunawan Nusanto is a lecturer at the Faculty of Mineral and Energy Technology at Universitas Pembangunan Nasional Veteran Yogyakarta, Indonesia. He earned his engineering degree (1990) in Mining Engineering study program from Universitas Pembangunan Nasional Veteran Yogyakarta and his master's degree in mining studies from ITB, Indonesia (2000). His current research mainly focuses on mining. He has published academic articles in reputable journals namely Review of Integrative Business and Economics Research, International Journal of Economics Business and Accounting Research, ICARSESS indexed international proceedings. Author contact details: Teknologi Mineral dan Energi; Universitas Pembangunan Nasional Veteran Yogyakarta; Jl. Padjajaran SWK 100, Lingkar Utara, Condong Catur, Indonesia; +6281328798888; Email: gunawan.nusanto@upnyk.ac.id ORCID ID: 0009-0008-2859-7781

Agus Sukarno, Universitas Pembangunan Nasional Veteran Yogyakarta

Agus Sukarno is a lecturer at the Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Yogyakarta, Indonesia. He earned his Bachelor’s degree (1988) in Management from Universitas Pembangunan Nasional Veteran Yogyakarta, and his Master’s degree in Management Science from the same university in 2001. His current research primarily focuses on financial management. He has published academic articles in reputable journals such as the Review of Integrative Business and Economics Research, the International Journal of Economics Business and Accounting Research, and in ICARSESS-indexed international conference proceedings. Rincian kontak penulis: Fakultas Ekonomi dan bisnis; Universitas Pembangunan Nasional Veteran Yogyakarta; Jl. Padjajaran SWK 100, Lingkar Utara, Condong Catur, Indonesia; +6282323725042; agus_sukarno@upnyk.ac.id; ORCID ID: 0009-0000-0092-5087.

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Submitted

2024-12-11

Published

2025-08-02

How to Cite

Survival Analysis: The Impact of Key Factors on Financial Distress and Longevity of Real Estate Firms Listed on the Indonesia Stock Exchange, with Inflation as a Moderating Variable (2014–2023). (2025). The Indonesian Accounting Review, 15(1), 47-58. https://doi.org/10.14414/tiar.v15i1.4917

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Vol. 15 No. 1 (2025): January-June 2025

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Survival Analysis: The Impact of Key Factors on Financial Distress and Longevity of Real Estate Firms Listed on the Indonesia Stock Exchange, with Inflation as a Moderating Variable (2014–2023). (2025). The Indonesian Accounting Review, 15(1), 47-58. https://doi.org/10.14414/tiar.v15i1.4917