ABSTRACT

This study aims at determining the predictions of financial distress in telecommunications companies in the Asia Pacific during the period of 2014–2017. This study employed a quantitative approach by involving telecommunications companies in the Asia Pacific as the population meeting the requirements to be samples. Determination of samples was conducted by purposive sampling technique. The data analysis method used was logistic regression analysis. The variables used were financial risk (FR), operating risk (OR), profitability (PR), lending interest rate (LR), and inflation rate (IN). The results show that (1) PR had a negative effect on financial distress, (2) the ratio of FR, OR, LR, and IN did not have a positive effect on financial distress, indicated by a positive regression coefficient, and the resulting significance value was greater than required, > 0.05.