SIAR-Global Jou nal o Managemen & Business Re iew (GJMBR)
ww.sia publica ions.o g ISSN: XX-XXX_XXXX
in o@sia publica ions.o g Vol. 1 Issue 1 Sep .-Oc . 2025
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Co po a e Capi al S uc u e and Financial Dis ess Likelihood
Monday Olade, IZEVBEKHAI (PhD, ACTI, CPA, FERIN)
Depa men o Accoun ancy, School o Financial S udies,
Auchi Poly echnic, Auchi Mondayize bekha[email p o ec ed]
+2348066918585
Isah MOHAMMED (PhD, ACTI)
Depa men o Taxa ion, School o Financial S udies,
Auchi Poly echnic, Auchi [email p o ec ed]
+2348136441284
Abs ac
This s udy examined co po a e capi al s uc u e and inancial dis ess likelihood o lis ed
insu ance i ms in Nige ia. The speci ic objec i es we e o in es iga e whe he long e m deb
asse , sho e m deb asse , long e m deb liabili y, sho e m deb liabili y ha e signi ican e ec
on inancial dis ess likelihood o lis ed insu ance i ms in Nige ia. The seconda y sou ce o da a
collec ion was adop ed in he s udy whe e he pu posi e sampling echnique was used o selec a
sample size o wen y- wo (22) ou o a popula ion o one hund ed and one (151) lis ed deposi
money banks in Nige ia. O dina y Leas Squa e eg ession analysis was used in his s udy. The
indings e ealed ha long e m deb asse has signi ican e ec , sho e m deb asse , long e m
deb liabili y ha e no signi ican e ec on inancial dis ess likelihood o lis ed insu ance i ms in
Nige ia. I was concluded ha long e m deb asse and sho e m deb asse had signi ican e ec
on inancial dis ess likelihood while long e m deb liabili y and sho e m deb liabili y had no
signi ican e ec on inancial dis ess likelihood o lis ed insu ance i ms in Nige ia. I was
ecommended ha i ms should ely mo e on long e m deb and u he on equi y as a sou ce o
inance so as o boos hei inancial pe o mance.
Keywo ds: Financial dis ess, co po a e capi al s uc u e, sho e m deb liabili y, sho e m deb
asse , long e m deb asse , long e m deb liabili y.
1. In oduc ion
Financial dis ess has eme ged as a p ominen conce n ac oss nea ly all global ma ke s. O e he
pas wo decades, he wo ld has obse ed nume ous ins ances o inancial dis ess and subsequen
ailu e among globally es eemed companies. The ab up collapse o se e al companies (En on,
2001; Swissai , 2001; Paci ic Gas and Elec ic L d, 2001; Wo ldCom, 2002; Conseco, 2002;
Pa mala , 2003; Del a Ai lines, 2005; Gene al Mo o s, 2009; The CIT G oup, 2009), once
emblema ic o co po a e inancial s abili y, signi ican ly impac ed he global landscape and aised
doub s ega ding he ounda ional p inciples o hese en e p ises. Financial dis ess occu s when a
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i m canno gene a e adequa e unds o ul ill i s inancial obliga ions p omp ly, ypically a ising
om he ailu e o mee commi men s o supplie s and c edi o s (Michael, 2024).
Fi m managemen consis en ly con on s he challenge o de e mining he app op ia e amoun o
capi al o be sou ced om owne s/sha eholde s h ough equi y, alongside he po en ial me hods o
acqui ing ex e nal unds om non-owne s ia deb , o op imize he capi al s uc u e. Deb
inancing se es as a c ucial capi al sou ce o nume ous expanding i ms, as hei e ained
ea nings may be inadequa e o inaccessible. Sou ces o inancing o i ms a e p ima ily
ca ego ized in o equi y and deb (Abebe, 2022).
Deb inancing en ails ob aining capi al om a designa ed lende o ini ia e business ope a ions,
wi h he obliga ion o epay he p incipal amoun along wi h in e es wi hin a s ipula ed ime ame.
Acqui ing loans om o he banks, companies, o inancial ins i u ions o acili a e business
ope a ions is e med deb inancing. An in e es expense is disbu sed p io o he deb 's ma u i y,
wi hin he loan p incipal ha will be epaid a a la e da e. Capi al s uc u e is de ined as a
combina ion o equi y and deb inancing, and is conside ed one o he mos c i ical inancial
a iables due o i s associa ion wi h he company's abili y o ul ill he needs o all s akeholde s,
including employees, he communi y, and sha eholde s (Ebe e al., 2023).
The insu ance indus y in Nige ia is an icipa ed o be he mos s able wi hin he inancial sec o ;
howe e , i is cu en ly acing nume ous challenges ha ha e ad e sely impac ed he alue o his
sub-sec o . The absence o mode n echnology, insu icien capi al s uc u e, excessi e eliance on
deb inancing, inadequa e elec ici y supply, na u al disas e s, and ine icien esou ce u iliza ion
ha e ende ed insu ance companies in Nige ia highly uncompe i i e (E im e al., 2022).
Financial analys s ad oca e o he u iliza ion o deb , iewing deb inancing as bene icial o
imp o ing i m pe o mance, con ingen upon i s acquisi ion a a o able a es and he p uden
applica ion o i s p oceeds. None heless, his has no been ue o ce ain i ms. Some i ms ha e
accumula ed subs an ial deb ha su passes hei ne gains, ad e sely impac ing hei pe o mance
and in es o con idence, ul ima ely esul ing in o al collapse and po en ial closu es. Resul s om
a ious schola s ega ding capi al s uc u e and co po a e inancial dis ess ha e been consis en
(Singhal e al., 2023). The deb o e hang indica es ha ele a ed deb le els de e in es men s due
o heigh ened cos s, esul ing in inancial dis ess o i ms in he sho e m, long e m, and o e all.
Imp ope u iliza ion o deb inancing can esul in bank up cy and nega i ely impac a i m's
pe o mance. The a o emen ioned de elopmen s, along wi h he absence o uni e sal ag eemen
on empi ical indings, necessi a ed his s udy. This s udy aims o in es iga e co po a e capi al
s uc u e and inancial dis ess likelihood among lis ed insu ance companies in Nige ia
2. Li e a u e Re iew and Hypo heses De elopmen
2.1 Financial Dis ess
The e m inancial dis ess e e s o a nega i e condi ion in which a i m expe iences a empo a y
liquidi y sho all and encoun e s di icul ies in mee ing i s inancial obliga ions as planned and in
ull. F om a comp ehensi e s andpoin , i is pe cei ed as an expensi e e en ha impac s
ela ionships wi h non- inancial s akeholde s and c edi o s. As a esul , a company enhances i s
limi ed access o new capi al, he eby incu ing he ele a ed expenses associa ed wi h sus aining
his s ained ela ionship. The co po a ion aces his ci cums ance when i s ea nings capaci y
diminishes and he o al deb exceeds he alue o he company's asse s (Shen e al.,2020).
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Financial dis ess is a condi ion in which a i m is unable o ul ill o encoun e s challenges in
mee ing i s inancial obliga ions o all s akeholde s. Olushola e al. (2021) classi ied inancial
dis ess in o wo ca ego ies: he i s being he ailu e o ul ill a deb obliga ion, and he second
in ol ing e o s o eo ganize deb o a e de aul . Financial dis ess occu s when a company is
unable o mee i s obliga ions o hi d pa ies (Akaji e al., 2021).
2.2 Capi al S uc u e
A ikekpa (2020) asse ed ha capi al s uc u e pe ains o a combina ion o a ious long- e m
unding sou ces and equi y sha es, encompassing ese es and su pluses o an en e p ise. The
capi al s uc u e o a company is a speci ic amalgama ion o deb , equi y, and o he inancial
sou ces u ilized o inance i s long- e m asse s. The p ima y dis inc ion in capi al s uc u e is
be ween deb and equi y. Fu he mo e, Ola ewaju (2019) asse ed ha capi al s uc u e e e s o
he p opo ional ela ionship be ween deb and equi y. The s udy e i ies ha deb p edominan ly
consis s o long- e m loans, such as deben u es, while equi y encompasses paid-up sha e capi al,
sha e p emium, ese es, and e ained ea nings (Michael, 2024).
2.3 Long Te m Deb Asse and Financial Dis ess
The long- e m deb o o al asse s a io assesses he p opo ion o long- e m deb wi hin a i m's
capi al s uc u e ela i e o i s o al asse s. The long- e m deb o o al asse s a io indica es a
company's inancial capaci y o ul ill i s obliga ions (Ebe e al., 2023). A yea ly calcula ion o his
a io e eals ha a dec ease signi ies imp o ed pe o mance and educed eliance on deb o
ope a ional needs. A g ea e le el o long- e m deb necessi a es ha a company main ains posi i e
e enue and consis en cash low. I is e y help ul o managemen o check i s deb s uc u e and
de e mine i s deb capaci y. The long- e m deb o o al asse s a io assesses a company's inancial
le e age. Long- e m deb e e s o obliga ions ha a e due o epaymen beyond 12 mon hs and
a e excluded om he cu en liabili ies sec ion o he balance shee . I encompasses mo gages
and long- e m leases, excluding gene al ading liabili ies (Asen e al., 2021).
Ebe e al. (2023) examined he impac o deb inancing on he inancial pe o mance o publicly
lis ed consume goods i ms in Nige ia. The s udy u ilized seconda y panel da a sou ced om
i ms' annual epo s and accoun s spanning 2011 o 2022, employing an ex pos ac o esea ch
design. Desc ip i e s a is ics we e u ilized o analyze he da a, and OLS eg ession analysis was
conduc ed o es he hypo heses a a 5% signi icance le el. The indings indica ed ha he deb -
equi y a io had an insigni ican and nega i e impac on he e u n on asse s o lis ed consume
goods companies in Nige ia. Con e sely, he long- e m deb a io, while no signi ican a he 5%
le el, demons a ed a posi i e e ec on he e u n on asse s o lis ed consume goods companies
in Nige ia.
E im e al. (2022) de e mined he impac o deb inancing on he alue o publicly aded consume
goods companies in Nige ia. The s udy employed an ex-pos ac o esea ch design. The s udy's
popula ion comp ised wen y-one (21) consume goods i ms lis ed on he Nige ian S ock
Exchange as o 31s Decembe 2019, while he sample size included six een (16) lis ed consume
goods i ms in Nige ia. The s udy employed a pu posi e sampling echnique. Da a we e ob ained
om he inancial s a emen s o he sampled i ms in Nige ia. The collec ed da a we e analyzed
using desc ip i e s a is ics and mul iple linea eg ession analysis wi h E-Views e sion 10. The
s udy's indings indica ed ha deb a io and long- e m deb exe a posi i e and signi ican impac
on he i m alue o publicly lis ed consume goods companies in Nige ia.
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Akaji e al. (2021) in es iga ed he impac o deb inancing on he pe o mance o i ms in Nige ia.
The s udy assessed deb inancing h ough long- e m deb inancing, sho - e m deb inancing,
and p e e ed s ock inancing, while i m pe o mance was e alua ed using e u n on equi y. The
esea ch employed an Ex Pos Fac o design, wi h da a sou ced om he NSE Fac book, Annual
Repo s, and Accoun s. The s udy's indings indica ed ha long e m deb inancing has a
signi ican and posi i e impac on i ms' pe o mance in Nige ia a a 5% signi icance le el. The
s udy de e mined ha deb inancing has enhanced i m pe o mance o e he yea s.
Abubaka (2020) assessed he impac o inancial le e age on inancial pe o mance, u ilizing
seconda y da a sou ced om he annual epo s o se en publicly lis ed Oil and Gas companies in
Nige ia. Desc ip i e s a is ics, including mean, median, minimum, maximum, s anda d de ia ion,
coe icien o a ia ion, skewness, and ku osis, we e employed o da a p esen a ion, while a
andom e ec s panel es ima o was u ilized o asce ain he impac o inancial le e age a iables;
sho - e m deb a io, long- e m deb a io, and o al-deb deb a io on inancial pe o mance, as
measu ed by e u n on equi y. The eg ession esul e ealed ha sho e m deb a io and long
e m deb a io exe no signi ican in luence on inancial pe o mance, while o al deb equi y a io
has a nega i e signi ican impac on inancial pe o mance as indica ed by ROE.
H1: F om he abo e, we hypo hesize ha long e m deb asse has no signi ican e ec on
inancial dis ess likelihood o lis ed insu ance i ms in Nige ia.
2.4 Sho Te m Deb Asse and Financial Dis ess
Sho - e m deb asse assesses he p opo ion o sho - e m liabili ies ela i e o a i m's o al asse s
ha a e due o epaymen wi hin an accoun ing pe iod. Ce ain schola s con end ha a sho e
deb du a ion enhances a i m's pe o mance. The sho - e m deb o o al asse s a io quan i ies
he company's inancial le e age. I indica es he p opo ion o asse s inanced by sho - e m deb .
Sho - e m deb e e s o obliga ions ha a e due o epaymen wi hin 12 mon hs o less and a e
excluded om he long- e m liabili ies o al on he s a emen o inancial posi ion. I encompasses
c edi o s and acc uals. The sho - e m deb o o al asse s a io indica es he company's capaci y o
ul ill i s immedia e inancial obliga ions. I indica es he p opo ion o company asse s inanced
h ough loans and o he long- e m inancial obliga ions (Asen e al., 2021).
Oko o and Jamani (2023) in es iga ed he co ela ion be ween sho - e m capi al s uc u e and
i m pe o mance, aiming o iden i y a secu e sho - e m deb -equi y h eshold in his con ex . The
esea ch employed he Panel h eshold eg ession es ima ion me hod, u ilizing comp ehensi e da a
om publicly aded manu ac u ing companies on he Nige ian S ock Exchange o he pe iod
2018 o 2022. The indings e ealed a h eshold e ec o he sho - e m deb o equi y a io on he
e u n on asse s indica o o inancial pe o mance.
Lucky and Michael (2019) in es iga ed he impac o le e age on he inancial dis ess o publicly
aded manu ac u ing i ms in Nige ia. C oss-sec ional da a was ob ained om he inancial
s a emen s o en publicly aded manu ac u ing companies. Resul e ealed ha bo h sho - e m
and long- e m deb ad e sely impac ope a ing p o i s.
Ohaka e al. (2020) in es iga ed he impac o deb inancing on he inancial pe o mance o i ms
in Nige ia. The s udy employed andom sampling echniques o de e mine he sample size. The
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s udy u ilized seconda y da a. Econome ic panel ools we e employed o examine he panel da a
o di e se companies ac oss sec o s in he capi al ma ke . The esul s o he analysis e ealed ha ,
size o he i m; sho e m deb and long e m deb ha e nega i e and signi icance impac on he
inancial pe o mance o lis ed i ms in Nige ia capi al ma ke .
H2: F om he abo e, we hypo hesize ha sho e m deb asse has no signi ican e ec on
inancial dis ess likelihood o lis ed insu ance i ms in Nige ia.
2.5 Long Te m Deb Liabili y and Financial Dis ess
Long- e m liabili ies, o long- e m deb s, a e obliga ions a company owes o ex e nal c edi o s ha
a e due in mo e han 12 mon hs. This di e en ia es hem om cu en liabili ies, which a company
is obliga ed o se le wi hin 12 mon hs. Long- e m liabili ies a e p esen ed alongside cu en
liabili ies on he inancial s a emen . Collec i ely, hese cons i u e he o al liabili ies o a company.
Se lemen o hese obliga ions is obliga o y. Long- e m liabili ies, which a e due beyond 12
mon hs and o en o ex ended pe iods, a e ypically u ilized by companies o inance endu ing
asse s such as land, buildings, and equipmen . The paymen and addi ional speci ics ega ding
hese deb s a e loca ed in he no es accompanying he inancial s a emen s wi hin he balance shee
(Aami e al., 2021).
Abubaka (2023) examined he in luence o capi al s uc u e on he inancial pe o mance o
Nige ian oil and gas companies. Th ee panel es ima o s we e employed o eg ess Re u n on
Asse s agains h ee capi al s uc u e me ics o he pe iod 2011–2020: sho e m deb o o al
asse s, long e m deb o o al asse s, and o al deb o o al equi y. The indings indica e ha he
inancial pe o mance o Nige ian oil and gas en e p ises exhibi s a signi ican in e se co ela ion
wi h he long- e m deb o o al asse a io, an indica o o capi al s uc u e. This indica es ha a
company's p o i will diminish as i s long- e m deb a io inc eases.
Onyenekwe e al. (2023) examined he capi al s uc u e and i s co ela ion and impac on he
dis ess o publicly lis ed non- inancial i ms in Nige ia. The p ima y aim o he s udy is o
in es iga e he impac o capi al s uc u e on he inancial dis ess o publicly lis ed non- inancial
companies on he Nige ia Exchange (NGX). Independen a iables, including inancial le e age
(deb o asse s), sho - e m deb o equi y, and long- e m deb o equi y, we e deemed o signi y
he capi al s uc u e. Seconda y da a om he inancial s a emen s o publicly aded non- inancial
companies in Nige ia om 2011 o 2021 we e u ilized. A ixed e ec s eg ession analysis me hod
has been u ilized o add ess he hypo heses. Con e sely, long- e m deb o equi y exe s an
inconsequen ial nega i e impac on he inancial dis ess o publicly aded non- inancial
companies in Nige ia.
Anie o and Ona uyeh (2019) in es iga ed he impac o deb inancing on co po a e pe o mance
in a s udy o publicly lis ed consume goods i ms in Nige ia. Analysis o audi ed annual epo s
om i een (15) consume goods companies lis ed on he Nige ian S ock Exchange (NSE) o he
pe iod 2006 o 2017 indica es ha o al deb , long- e m deb liabili y posi i ely a ec he
pe o mance o consume goods i ms in Nige ia, as de e mined by panel eg ession me hodology.
Kenn-Ndubuisi and Nweke (2019) in es iga ed he co ela ion be ween inancial le e age and
co po a e inancial pe o mance in Nige ia, analyzing 80 non- inancial i ms lis ed on he Nige ian
S ock Exchange om 2000 o 2015. The o al deb o capi al a io, deb o equi y a io, cos o
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deb , deb o asse a io, and long- e m deb o capi al a ios se ed as indica o s o inancial
le e age. Panel da a me hodologies, encompassing pooled eg ession, ixed e ec s, andom
e ec s, and ma ginal models, we e u ilized. The indings indica ed ha ea nings pe sha e a e
signi ican ly in e sely co ela ed wi h he deb o equi y a io and he o al deb o o al asse
le e age me ics, whe eas e u n on equi y (ROE) exhibi ed an insigni ican co ela ion. The long-
e m deb o capi al a io exhibi ed a nega i e co ela ion wi h ROE.
H3: F om he abo e, we hypo hesize ha long e m deb liabili y has no signi ican e ec on
inancial dis ess likelihood o lis ed insu ance i ms in Nige ia.
2.6 Sho Te m Deb Liabili y and Financial Dis ess
Sho - e m deb e e s o inancial obliga ions ha a e payable wi hin he o hcoming 12 mon hs
o he cu en iscal yea o an en e p ise. Sho - e m deb s a e also known as cu en liabili ies.
They a e loca ed in he liabili ies sec ion o a company's inancial s a emen . Sho - e m deb is
di e en ia ed om long- e m deb , which pe ains o deb obliga ions ma u ing beyond 12 mon hs.
Sho - e m deb is p ima ily associa ed wi h business deb obliga ions, bu i can also pe ain o
pe sonal inancial esponsibili ies (Singhal e al., 2023).
Ho s all (2023) empi ically de e mine he impac o deb s uc u e on he p o i abili y o publicly
lis ed oil and gas companies in Nige ia. The esea ch has enhanced he empi ical li e a u e
ega ding he deb s uc u e and inancial pe o mance o publicly aded oil and gas companies in
Nige ia. The s udy acili a ed comp ehension o he ela ionship be ween ins i u ional ac o s and
he deb s uc u e o Nige ian i ms, as well as he co esponding impac on inancial pe o mance.
Fu he mo e, sho - e m deb (STD) exhibi ed a signi ican nega i e impac on inancial
pe o mance as measu ed by ROCE, while demons a ing a posi i e co ela ion wi h NPM among
lis ed oil and gas companies in Nige ia.
Sike e al. (2022) e alua ed he impac o capi al s uc u e on he inancial pe o mance o publicly
lis ed non- inancial i ms in Nige ia. The esea ch was g ounded in posi i is philosophy and
employed an ex pos ac o me hodology, u ilizing his o ical da a de i ed om he inancial
s a emen s o all non- inancial companies lis ed on he Nige ian S ock Exchange o e a wel e-
yea pe iod om 2010 o 2021. The s udy u ilized panel da a analysis h ough he pooled eg ession
model, ixed e ec s model, and andom e ec s model. The s udy e ealed ha sho - e m deb
signi ican ly posi i ely in luences e u n on asse s and Tobin’s Q, whe eas long- e m deb
signi ican ly nega i ely a ec s e u n on asse s.
Akaji e al. (2021) in es iga ed he impac o deb inancing on he pe o mance o i ms in Nige ia.
The esea che s assessed deb inancing h ough he a iables o long- e m deb inancing, sho -
e m deb inancing, and p e e ed s ock inancing. The s udy employed an ex-pos ac o esea ch
design, and da a we e sou ced om annual epo s and he NSE ac book. The ga he ed da a we e
analyzed u ilizing o dina y leas squa es (OLS) s a is ics. Findings indica ed ha deb inancing
has a signi ican and posi i e impac on i m pe o mance in Nige ia a a 5% signi icance le el.
Anie o and Ona uyeh (2019) in es iga ed he impac o deb inancing on he co po a e
pe o mance o publicly aded consume goods companies in Nige ia. Da a o he s udy we e
ob ained om he audi ed annual epo s o i een (15) consume goods companies lis ed on he
Nige ian S ock Exchange (NSE) o he pe iod om 2006 o 2017. The da a we e analyzed
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employing desc ip i e s a is ics and panel eg ession me hodology. The indings indica ed ha
o al deb , long- e m deb , and sho - e m deb o asse a io posi i ely impac ed he pe o mance
o consume goods i ms in Nige ia.
H4: F om he abo e, we hypo hesize ha sho e m deb liabili y has no signi ican e ec on
inancial dis ess likelihood o lis ed insu ance i ms in Nige ia.
3.0 Me hodology
The ex-pos ac o esea ch design was used in his s udy due o he ac ha he a iables canno
be manipula ed by he esea che . This me hod was adop ed since social scien i ic esea ch
p oblems do no lend hemsel es o expe imen al and con olled inqui y o he ex-pos ac o kind.
The popula ion comp ises o one hund ed and i y one (151) i ms lis ed on Nige ian Exchange
G oup as a 31s Decembe , 2024. Since he en i e lis ed i ms canno be used o he s udy, he
s udy is limi ed o wen y- wo (22) lis ed insu ance i ms in Nige ia. In selec ing he sample,
pu posi e sample echnique was used o de i e he sample size which used o ensu e ha he
sample ep esen s a di e si y o pe spec i es. The seconda y sou ce o da a collec ion was used
o his s udy whe e da a was ga he ed om audi ed annual epo s o selec ed lis ed insu ance
i ms in Nige ia. Howe e , o he pu pose o his s udy, en (10) yea s annual epo s o wen y-
wo (22) selec ed insu ance i ms we e adop ed. The s udy employed mul iple eg ession echnique
o analysis using Leas Squa es eg ession es ima ion. This me hod was adop ed because i
enhances easy p esen a ion and in e p e a ion o da a. The empi ical model o he s udy is
ma hema ically exp essed as ollows:
FDTSi = α + β1LTDAi + β2STDAi + β3LTDLi +β4STDLi + Ɛi
Whe e;
FDTSi = Financial Dis ess
LTDAi = Long Te m Deb Asse
STDAi = Sho Te m Deb Asse
LTDLi = Long Te m Deb Liabili y
STDLi = Sho Te m Deb Liabili y
Ɛi = E o e m
α = in e cep
β1 – β3 = Coe icien s o pa ame e s es ima ed
8
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The a iables used in his s udy we e measu ed as ollows:
S/N
Va iables
Measu emen
1.
Financial Dis ess
The abili y o a company o gene a e cash o pay i s deb
obliga ions and mee o he inancial obliga ions can
indica e inancial dis ess.
2.
Long Te m Deb Asse
This o ms he o al amoun o deb ha a company owes
o lende s wi h a ma u i y o mo e han one yea .
3.
Sho Te m Deb Asse
This o ms he po ion o long- e m deb ha is due
wi hin he nex yea .
4.
Long Te m Deb Liabili y
This o ms he o al amoun o deb ha a company owes
o lende s wi h a ma u i y o mo e han one yea .
5.
Sho Te m Deb Liabili y
This o ms he po ion o long- e m deb ha is due
wi hin he nex yea and is epo ed on he liabili y side
o he balance shee .
Sou ce: Resea che ’s Compila ion, 2025
4. Resul and Discussion
Table 1: Summa y o Desc ip i e S a is ics
Desc ip i e S a is ics
N
Minimum
Maximum
Mean
S d. De .
Ku osis
S a is ic
S a is ic
S a is ic
S a is ic
S a is ic
S a is ic
S d.
E o
FDTS
220
-.60
3.17
1.3992
.56301
1.118
.327
LTDA
220
5.61
236.13
51.4621
34.63139
11.541
.327
STDA
220
.00
31.87
6.3296
5.74201
4.572
.327
LTDL
220
-83.34
25.03
1.1371
6.65925
120.185
.327
STDL
220
-3.40
3.82
.1704
.50841
32.414
.327
Valid N
(lis wise)
220
Sou ce: Ou pu o da a analysis by au ho using SPSS (2025)
F om he abo e able, he dependen a iable, inancial dis ess (FDTS) has a mean alue o
1.3992, s anda d de ia ion o .56301, minimum alue o -0.60 and maximum o 3.17. The
independen a iables; long e m deb asse (LTDA) has a mean alue o 51.4621 and a s anda d
de ia ion o 34.63139, a minimum and maximum alue o 5.61 and 236.13 espec i ely. Sho
e m deb asse (STDA) has a mean alue o 6.3296, s anda d de ia ion o 5.74201, minimum
alue o 0.00 and maximum alue o 31.87. Long e m deb liabili y (LTDL) has a mean alue o
1.1371, s anda d de ia ion o 6.65925, minimum alue o -83.34 and maximum o 25.03. Sho
e m deb liabili y (STDL) has a mean alue, s anda d de ia ion, minimum and maximum alues
o 0.1704, 0.50841, -3.40 and 3.82 espec i ely.
9
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Table 2: Summa y o Coe icien o Co ela ion
Co ela ions
FDTS
LTDA
STDA
LTDL
STDL
FDTS
Pea son Co ela ion
1
-.266
-.170
.104
.082
Sig. (2- ailed)
.000
.014
.134
.238
N
209
209
209
209
209
LTD
A
Pea son Co ela ion
-.266
1
.086
-.001
.010
Sig. (2- ailed)
.000
.213
.985
.881
N
209
209
209
209
209
STD
A
Pea son Co ela ion
-.170
.086
1
.049
.378
Sig. (2- ailed)
.014
.213
.481
.000
N
209
209
209
209
209
LTDL
Pea son Co ela ion
.104
-.001
.049
1
.768
Sig. (2- ailed)
.134
.985
.481
.000
N
209
209
209
209
209
STDL
Pea son Co ela ion
.082
.010
.378
.768
1
Sig. (2- ailed)
.238
.881
.000
.000
N
209
209
209
209
209
Sou ce: Ou pu o da a analysis by au ho using SPSS (2025)
Table 2 abo e shows he 2- ailed co ela ion analysis o he a iables a 5% (0.05) le el o
signi icance. This shows ha inancial dis ess (FDTS) is posi i ely co ela ed wi h long e m deb
liabili y (LTDL) and sho e m deb liabili y (STDL) while nega i ely co ela ed wi h long e m
deb asse (LTDA) and sho e m deb asse (STDA). Long e m deb asse (LTDA) is posi i ely
co ela ed wi h sho e m deb asse (STDA) and sho e m deb liabili y (STDL) while nega i ely
co ela ed wi h inancial dis ess (FDTS) and sho e m deb asse (STDA). Sho e m deb asse
(STDA) is posi i ely co ela ed wi h long e m deb asse (LTDA), long e m deb liabili y (LTDL)
and sho e m deb liabili y (STDL) while nega i ely co ela ed wi h inancial dis ess (FDST).
Table 3: Summa y o Reg ession Resul
Model Summa y
Mul iple R
.402
R Squa e
.162
Adjus ed R Squa e
.146
S d. E o o he Es ima e
.520
Coe icien s
Uns anda dized
Coe icien s
Be a
Sig.
B
S d. E o
Equa ion 1
(Cons an )
1.771
.072
24.524
.000
LTDA
-.005
.001
-.313
-4.970
.000
STDA
-.023
.007
-.235
-3.153
.002
LTDL
-.005
.009
-.061
-.579
.563
