Macroeconomic Indicators and its Impact on Financial Distress in Oil and Gas Industry (A Study From Indonesia)


Pariang Siagian, Naufal.OW, Meiryani
Accounting and Finance Department, Faculty of Economics and Communication Bina Nusantara University, Jakarta, Indonesia.


Macroeconomics has the aggregate economic problems as a whole of the market system include socio-economic, such as national income, inflation rates, interest rates, exchange rates, price levels, and others that can be impacted on various business activities. The main address study is to explore the impact of macroeconomic indicators on financial distress in oil and gas industries with a case study in Indonesia. These indicators refer to the companies studied such as exchange rate, world oil price, and inflation rate. In the meantime, the financial distress calculates by the Altman Z-score model. The key findings clearly point out that all indicators have an effect on financial distress. In turn, the results also can enable corporate leaders and policymakers to develop future policies that focus on macroeconomic indicators and financial distress in those industries. Likewise, this study may contribute and comply with the related literature referring to the issues.