Good Corporate Governance and Predicting Financial Distress Using Logistic and Probit Regression Model

Juniarti, Juniarti

doi:10.9744/jak.15.1.43-50

Cited by 17 publications

(20 citation statements)

References 17 publications

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“…[11,14,26]. Penelitian lain menyatakan bahwa perusahaan yang mempunyai poor performance disebabkan oleh poor governance, dengan adanya hubungan positif antara GCG dengan nilai dan kinerja perusahaan [9].…”

Section: B Kerangka Pemikiranunclassified

Budaya Perusahaan: Penerapan Good Corporare Governance Serta Implikasinya Terhadap Keberlanjutan Kinerja Bank

Supriyatna¹,

Yulianto²,

Hamdani³

et al. 2019

BIEJ

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Kinerja merupakan suatu proses manajemen yang dirancang untuk menghubungkan tujuan organisasi dengan tujuan individu sedemikian rupa, sehingga baik tujuan individu maupun tujuan korporasi dapat bertemu. Ukuran dari kinerja perusahaan sangatlah bermacam-macam dan berbeda-beda dari satu industri ke industri lainnya tergantung pada aktivitas pokok perusahaan seperti produksi, keuangan, pemasaran, sumber daya manusia, jasa dan banyak lagi kegiatan usaha lainnya. Pada penelitian ini, jenis industri yang akan diteliti bergerak di bidang jasa perbankan. Kinerja keuangan adalah salah satu tolak ukur dalam menilai suatu bank dan kondisi keuangan yang bagus cenderung menarik perhatian investor. Dalam hubungannya dengan kinerja, laporan keuangan sering dijadikan dasar untuk penilaian kinerja bank karena dapat menunjukkan posisi keuangan dan juga indikator kinerja. Berdasarkan data kinerja dan rasio keuangan perbankan nasional pada tahun 2013 – 2017, dapat dilihat bahwa tren kinerja perbankan cenderung fluktuatif dari tahun ke tahun. Salah satu penyebab turunnya kinerja dan rasio keuangan adalah penerapan Good Corporate Governance (GCG) yang kurang baik. Permasalahan mengenai kinerja perbankan selaras dengan data statistik GCG yang dikeluarkan oleh LPPI pada tahun 2018, dimana rata-rata peringkat GCG untuk Bank Umum Kategori Usaha (BUKU) 1 dan 2 berada di atas standar standar industri perbankan. Selama ini, penerapan GCG dilakukan pada tingkat corporate dan kurang optimalnya implementasi GCG yang dilakukan di tingkat unit bisnis maupun tingkat operasional / fungsional. Pemodelan dari kerangka penelitian dirancang dengan menggunakan model persamaan struktural atau Structural Equation Model (SEM) yang merupakan pendekatan terintegrasi antara Analisis Faktor, Model Struktural dan Path Analysis. Berdasarkan fenomena yang terjadi pada industri perbankan di Indonesia, maka kerangka pemikiran penelitian yang akan ditelaah adalah mengetahui gambaran keberlanjutan kinerja pada industri perbankan di Indonesia yang merupakan dampak dari penerapan GCG yang didukung oleh budaya perusahaan.

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Section: B Kerangka Pemikiranunclassified

Budaya Perusahaan: Penerapan Good Corporare Governance Serta Implikasinya Terhadap Keberlanjutan Kinerja Bank

Supriyatna¹,

Yulianto²,

Hamdani³

et al. 2019

BIEJ

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“…A company that have high profitability will be more trusted by investors and creditors as their investment target [41]. The ease in obtaining fund will decrease the level of financial distress [24], [42], [43]. Leverage positively affect financial distress.…”

Section: The Effect Of Liquidity Profitability Leverage Firm Size mentioning

confidence: 99%

Does Diversification Strategy Reduce The Level of Financial Distress? (Evidence from Indonesia)

Nugrahanti¹,

Sutrisno²,

Rahman³

et al. 2019

Proceedings of the Proceedings of the 1st Sampoerna University-Afbe International Conference, SU-AFBE 2018, 6-7 December 2018,

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The objective of this study is to investigate the effect of diversification strategy towards the level of financial distress. Altman Z-score is used to measure the level of financial distress and Herfindahl index is used to measure diversification in this research. This study used 101 non-financial companies listed in Indonesian Stock Exchange during 2014-2016 (303 firm years) as samples. For testing the hypotheses, Mann Whitney test and panel data regression with random effect model was used. The results showed that there are Z score differences between high and low diversified firms; and diversification has a negative effect towards the level of financial distress. The control variables testing showed that liquidity, profitability, and firm size negatively influence the level of financial distress, while leverage has a positive effect towards the level of financial distress. Besides, the type of diversification has no effect toward financial distress.

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“…This agency theory is the basis of the corporate governance concept. Corporate governance aims to reduce agency costs due to information asymmetric (Juniarti, 2013). How sure investors are to invest, it depends on how the corporate governance is implemented to gain profits.…”

Section: Agency Theorymentioning

confidence: 99%

“…Corporate governance consists of institutional ownership variables, independent directors, and audit committee (Willim, 2015). Research (Juniarti, 2013) GCG variable is a proxy of ownership structure, board of directors and audit committee. Unlike GCG in banks, Bank of Indonesia sets the main principles in GCG that are related to transparency, accountability, responsibility, independence and fairness (Hadiwijaya et al, 2016).…”

Section: Good Corporate Governance (Gcg)mentioning

confidence: 99%

Internal Determinants of Islamic Bank Profitability: Evidence from Bangladesh

Hassan¹,

Ahmed²

2019

IJEFR

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This paper empirically examines the impact of bank specific characteristics in determining the Islamic banking profitability in Bangladesh. Research period covers 2010–2017. Research method is a panel analysis. Fixed effects model is applied based on the Hausman test. The study takes return on assets (ROA) as the proxy of profitability. Company specific explanatory variables for the study are bank size, capital-to-risk assets (CRAR), investment-to-deposit (liquidity), non-performing investment (NPI), and cost-to-income. The study finds 4 out of 5 variables statistically significant. However, liquidity slightly misses the significance level. We have found CRAR and cost-to-income are negatively correlated, and liquidity is positively correlated to bank profitability as our expectation. On the other hand, estimation shows a negative correlation between bank size and profitability. Moreover, NPI is found to be positively correlated to ROA because Islamic banking industry’s very low percentage of non-performing investment (3.3%) could not inversely affect the profitability.

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Good Corporate Governance and Predicting Financial Distress Using Logistic and Probit Regression Model

Cited by 17 publications

References 17 publications

Budaya Perusahaan: Penerapan Good Corporare Governance Serta Implikasinya Terhadap Keberlanjutan Kinerja Bank

Budaya Perusahaan: Penerapan Good Corporare Governance Serta Implikasinya Terhadap Keberlanjutan Kinerja Bank

Does Diversification Strategy Reduce The Level of Financial Distress? (Evidence from Indonesia)

Internal Determinants of Islamic Bank Profitability: Evidence from Bangladesh

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