THE INFLUENCE OF PROBABILITY OF FINANCIAL DISTRESS AND LEVERAGE ON THE COST OF FINANCIAL DISTRESS IN TRANSPORTATION COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE

Abstract

This research aims to determine the effect of probability of financial distress and leverage
on the cost of financial distress. The object of this research is companies in the transportation
sector listed on the Indonesia Stock Exchange (BEI). Data analysis uses Panel Data Regression,
and secondary data obtained from the company's annual financial reports for the 2019-2021
period. Based on the results of the research conducted, it shows that the probability of financial
distress and leverage variables have a significant simultaneous and partial effect on the cost of
financial distress. This means that the probability of financial distress and leverage are
determining factors in the cost of financial distress.