Managerial Ownership as a Moderator of the Effect of Profitability and Solvency on Financial Distress

Abstract : The aims of this study to analyze the effect of profitability and solvency on financial distress, with managerial ownership as a moderating variable, in food and beverage companies listed on the Indonesia Stock Exchange (IDX) for the 2019–2023 period. The research method used was quantitative with a moderated regression analysis approach. The results show that profitability has a significant negative effect on financial distress, while solvency has a significant positive effect. Managerial ownership strengthens the effect of profitability on reducing financial distress, but does not moderate the relationship between solvency and financial distress. The implications of this study emphasize the importance of corporate governance and ownership structure in strengthening financial performance and reducing the risk of financial distress.