Jurnal Akuntansi ISSN 2303-0356 Vol. 14, No.1, February 2024 Hal. 9-24 Corporate in Financial Distress and Determinant Analysis of Successful Financial Turnaround Ardy Primawan 1) , Nanny Dewi Tanzil 2) and Prima Yusi Sari 3) Faculty of Economics and Business, Padjajaran University, Indonesia 1) 2) 3) ARTICLE INFO ABSTRACT Article history: Received: November 30 th 2023 Revised: January 17 th 2024 Accepted: February 20 th , 2024 Corporate financial distresses and turnarounds has always been relevant on business literatures because we have seen more than enough corporate bankruptcies over the past decades. Financial distress is a condition of declining financial performance, earlier phase prior to companies experiencing bankruptcy or liquidation. The response to this condition ranges from a denial of the problem, to reducing the scale and scope of operations, all the way to the top change of management and dissolution of corporation. With the complexities of issues and implications associated with financial distresses and the recoveries attempted by corporations, the ability to formulate appropriate strategic responses is becoming very much important for stakeholders. This study is focusing on determinant analysis of multiple organizational factors, which are expense retrenchment, profitability, free assets, size, assets retrenchment and leverage, that may influence the successful financial turnaround for financially distressed firms and use logistic regression in hypothesis testing of the study. Samples are taken from manufacturing companies listed in Indonesia Stock Exchange (IDX) in research period 2015 to 2019. Financial data from 2015 to 2019 are used to determine financial distresses utilizing Altman’s Z-Score model, and data from 2016 to 2018 are processed as the independent variables. Results of the study found that all of five independent variables have positive influence toward the likelihood of successful financial turnaround, however only three variables including profitability, free assets and leverage giving significant influence, meanwhile two other independent variables including expense and assets retrenchment do not have significant influence the likelihood of successful financial turnaround. Keywords: Financial turnaround Financial distress Altman Z-Score Determinant. Correspondence: Ardy Primawan ardy21001@mail.unpad.ac.id How to cite (APA Style): Primawan, A.,Tanzil, Neny Dewi & Sari, Prima Yusi. (2024). Corporate in Financial Distress and Determinant Analysis of Successful Financial Turnaround . Jurnal Akuntansi, 9-23 INTRODUCTION Dynamic economic conditions combined with the rapid pace of change, provide tough challenges for every company that lives in it. Often these rapid changes cannot be anticipated well by companies, which ultimately drags them into financial distress, but this does not mean that the company's life journey is over, more precisely, the company is experiencing a condition of declining financial performance. which can increase the risk of insolvency of the company. The term insolvency is different from the term bankruptcy, although the two are often confused. Insolvency is generally understood as a state when a company have the inability to pay debts when they are due. Financial distress as defined by Kristanti (2019) is a situation when a company is unable to fulfill its obligations. This happens as an early sign before the worst thing that can happen, which is bankruptcy. While we're on the subject of bankruptcy, Law 37 of 2004 (Kepailitan dan Penundaan Kewajiban Pembayaran Utang - PKPU) governs the laws of Indonesia pertaining to this matter. Any debtor with two or more creditors who is unable to pay in full one due and receivable debt may be declared bankrupt by a court decision, either upon the debtor's request or upon the request of any 9