The Role of External and Internal Factors in the Accuracy of Predicting Financial Distress

Abstract

The purpose of this paper is to predict financial distress explored how the proposed by experts. As we know that the Financial Distress is an early predictor in assessing the financial performance of the company, for this prediction in need of external and internal analysis of the company.

The methodology of this research is the study of literature and secondary data. This paper is expected to provide a comprehensive picture of the company's financial performance through the prediction of financial distress that has been widely used some previous researchers.

The results of this study will be a contribution to the development of literature and provide a comparison of the application of financial distress prediction model that has been done so create a model of financial distress research using external and internal analysis. The results of this study will also provide an explanation that there has been no study of financial distress by using external and internal factors simultaneously and integrated.

Keywords: financial, distress, performance, company, external, internal factors