Gender Diversity Perspective as Moderation: Does Profitability and Capital Structure Affect Financial Distress during Corona Virus Period?

Abstract

Non-cyclical consumer companies are companies that produce or distribute primary goods. Financial distress is a condition where a company experiences financial difficulties before it is finally said to be bankrupt. Financial distress is a serious problem that can lead to bankruptcy and negative things for the company. By identifying factors that contribute to financial distress, companies can take steps to reduce risk and improve financial health. In this study, the factors that can identify financial distress are profitability and capital structure. This study was conducted to determine the effect of profitability and capital structure on financial distress moderated by gender diversity. This research was conducted on non-cyclical companies listed on the IDX in 2019-2022. This research method uses quantitative methods. In the calculation, researchers use the Altman Z Score method for measuring financial distress, ROA for measuring profitability, and DER for measuring capital structure. The results of this study are that profitability has a negative effect on financial distress, while capital structure has a positive effect. Gender diversity and profitability variables moderated by gender diversity have no significant effect on financial distress, while gender diversity strengthens the effect of capital structure on financial distress.