Research Novelty: This study presents novelty by examining the influence of
financial behavior on financial performance, by including financial distress as a
moderating variable. Through this innovative approach, this study attempts to fill
the gap in the literature on financial distress moderating (strengthening) the
relationship between financial behavior and financial performance.
The recommended strategy for companies experiencing financial difficulties is debt
restructuring, where companies can look for options to renegotiate or extend their debt
repayment periods, or seek to lower the interest rates paid. This can ease the
company^s financial burden in the short term.
This study identifies whether financial distress strengthens or weakens the relationship
between financial behavior and financial performance. The results show that
companies in financial distress will be more vulnerable to the negative impact of
suboptimal financial behavior so that financial performance will decline more sharply.
Meanwhile, good financial behavior can be a supporting factor for companies in
managing these financial pressures.
This study identifies whether financial distress strengthens or weakens the relationship
between financial behavior and financial performance. The results show that
companies in financial distress will be more vulnerable to the negative impact of
suboptimal financial behavior so that financial performance will decline more sharply.
Meanwhile, good financial behavior can be a supporting factor for companies in
managing these financial pressures.
