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Abstract
This study aims to analyze the effect of financial ratios CAR (Capital Adequacy Ratio), NPL (Non Performing Loan), ROA (Return on Assets), ROE (Return on Equity), BOPO (Operational Cost/Operational Income), LDR (Loan to Deposit Ratio) to financial distress bankingin 2016- 2019. The example of this study used purposivesampling as many as 9 companies in accordance with predetermined criteria with a research period of 2016- 2019, informasi obtained from the Indonesia Stock Exchange (IDX). The analytical method used to test the research hypothesis is logistic regression. The results showed that the financial ratios of CAR, NPL, ROA, ROE, BOPO and LDR had predictive power for the condition of banks experiencing financial distress. The resulting regression equation is Y= 924, 779 -17, 499 CAR+ 6, 186 NPL+ 39, 350 ROA 32, 091 ROE+ 8, 081 LDR– 25, 516 BOPO. The results of the clarification partially show that the CAR, BOPO and LDR variables have a negative and significant result on financial distress. While the variables NPL, ROA serta ROE have a positive but not significant effect on financial distress.
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References
- Abdullah, J., Hasan, W., & Dusa, S. Y. (2021). Analysis of Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), and Net Interest Margin (NIM) in Predicting Financial Distress in Financial Reports of PT. Bank Rakyat Indonesia (Persero) Tbk. Journal of Economics, Finance and Accounting Studies, 3(2), 81-90.
- Asyikin, J., Chandrarin, G., & Harmono, H. (2018). Analysis of financial performance to predict financial distress in sharia commercial banks in Indonesia. International Journal of Accounting, Finance, and Economics, 1(2), 11-20.
- Bukhori, I., Kusumawati, R., & Meilani, M. (2022). Prediction of Financial Distress in Manufacturing Companies: Evidence from Indonesia. Journal of Accounting and Investment, 23(3), 588–605.
- Chabachib, M., Kusmaningrum, R. H., Hersugondo, H., & Pamungkas, I. D. (2019). Financial distress prediction in Indonesia. WSEAS Transactions on Business and Economics, 16(2015), 251–260.
- Daniella, N., & Lukman, H. (2023). an Empirical Study of the Factors That Influence Financial Distress (a Case on Mining Industry in Indonesia). International Journal of Application on Economics and Business, 1(2), 207–215.
- Dharmaputra Juliyan, H., & Lina Kusrina, B. (2018). Financial Distress Prediction and Seeing the Influence of the Altman Ratio on Company Financial Distress. Journal of Business Economics, 23(3), 236–243.
- Edi, E., & Eilyn, E. (2023). Predicting financial distress in Indonesia property sector company. Fair Value : Jurnal Ilmiah Akuntansi Dan Keuangan, 5(9), 3717–3727.
- Erdi, T. W., Agustin, W., Pradana, S. A. G., & Trisanti, T. (2022). CAMEL Ratio as an Indicator of Financial Distress Altman Z-Score Model with Company Size as a Moderating Variable. Journal of Applied Sciences in Accounting, Finance, and Tax, 5(2).
- Fadhilah, K., Darminto, D. P., & Ahmar, N. (2023). Determinan Financial Distress Dengan Komite Audit Sebagai Pemoderasi. Jurnal Imu Manajemen Retail (JIMAT), 4(1), 33–47.
- Ferdiansyah, F., & Widyarti, E. T. (2022). Analysis of CAMEL ratio on financial distress banking companies in Indonesia. Diponegoro International Journal of Business, 5(1), 47-56.
- Harahap, A. M. (2016). Prediction of financial distress in foreign exchange banking firms using risk analysis, good corporate governance, earnings, and capital. The Indonesian Accounting Review, 5(1), 33-44.
- Kowanda, D., Pasaribu, R., & Firdaus, M. (2015). Financial distress prediction on public listed banks in Indonesia stock exchange. Interdisciplinary Behavior and Social Sciences, 333-338.
- Laila, N. (2017). Financial distress prediction using Bankometer model on Islamic and conventional banks: Evidence from Indonesia. International Journal of Economics and Management, 11(S1), 169-181.
- Murni, Y., Astuti, T., Nisa, C., & Djaddang, S. (2017). Using CAMEL To Predict Management Behavior In Indonesia’s Sharia Bank. IOSR Journal of Business and Management, 19(03), 01-04.
- Nufus, K., Audina, N., & Muchtar, A. (2018). Effect of Financial Distress Ratio Banking Company in Indonesia Period 2011-2015. Research Journal of Finance and Accounting, 9(16), 6875.
- Paidar, A., Shafiee, M., Avazzadeh, F., & Valipour, H. (2021). Predicting Banks' Financial Distress by Data Envelopment Analysis Model and CAMELS Indicators. Journal of System Management, 7(3), 213-240.
- Pasaribu, R. B. (2014, November). Financial Distress Prediction on Public Listed Banks in Indonesian Stock Exchange. In Proceeding, The 3rd International Congress on Interdisciplinary Behavior & Social Science.
- Pratama, B. Y., & Aisjah, S. (2016). Prediksi Financial Distress Menggunakan Analisis Rasio Keuangan dan Zmijewski (Studi Pada Perusahaan Ritel yang Terdaftar di Bursa Efek Indonesia). Jurnal Ilmiah Mahasiswa FEB, 9(2), 1–16.
- Purwantini, M., Yustrianthe, R. H., Jati, B. P., & Murwani, A. S. (2023). Studi Empiris Faktor Determinan Financial Distress. Owner, 7(2), 1271–1282.
- Qurriyani, T. (2013). Early Detection of Potential Bank Bankruptcy Through Financial Ratio Analysis: Multinomial Logistic Regression Model. Available at SSRN 2379517.
- Rokhayati, I., Dwi Purnomo, S., Retnowati, D., Winarto, H., Prabawa, A., & Kencana, H. (2022). Analysis of financial distress in banking companies listed on the indonesian stock exchange. Akuntabel, 19(2), 269–274.
- Sjahrial, R., Priharta, A., Parewangi, A. M. A., & Hermiyetti, H. (2014, July). Modeling Financial Distress: The Case of Indonesian Banking Industry. In EcoMod Conference Proceedings.
- Utami, D. W., Atmaja, H. E., & Hirawati, H. (2021). The Role of Financial Ratios on the Financial Distress Prediction. Kinerja, 25(2), 287–307.
- Wardani, H. K., & Rachman, A. N. (2022). Analisis Financial Distress pada Perusahaan Manufaktur dan Property yang Terdaftar di BEI. Seminar Nasional Karya Ilmiah Multidisiplin, 2(1), 68–86.
- Yusra, I., & Bahtera, N. T. (2021). Prediction modelling the financial distress using corporate governance indicators in Indonesia. Jurnal Kajian Manajemen Bisnis, 10(1), 18.
References
Abdullah, J., Hasan, W., & Dusa, S. Y. (2021). Analysis of Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), and Net Interest Margin (NIM) in Predicting Financial Distress in Financial Reports of PT. Bank Rakyat Indonesia (Persero) Tbk. Journal of Economics, Finance and Accounting Studies, 3(2), 81-90.
Asyikin, J., Chandrarin, G., & Harmono, H. (2018). Analysis of financial performance to predict financial distress in sharia commercial banks in Indonesia. International Journal of Accounting, Finance, and Economics, 1(2), 11-20.
Bukhori, I., Kusumawati, R., & Meilani, M. (2022). Prediction of Financial Distress in Manufacturing Companies: Evidence from Indonesia. Journal of Accounting and Investment, 23(3), 588–605.
Chabachib, M., Kusmaningrum, R. H., Hersugondo, H., & Pamungkas, I. D. (2019). Financial distress prediction in Indonesia. WSEAS Transactions on Business and Economics, 16(2015), 251–260.
Daniella, N., & Lukman, H. (2023). an Empirical Study of the Factors That Influence Financial Distress (a Case on Mining Industry in Indonesia). International Journal of Application on Economics and Business, 1(2), 207–215.
Dharmaputra Juliyan, H., & Lina Kusrina, B. (2018). Financial Distress Prediction and Seeing the Influence of the Altman Ratio on Company Financial Distress. Journal of Business Economics, 23(3), 236–243.
Edi, E., & Eilyn, E. (2023). Predicting financial distress in Indonesia property sector company. Fair Value : Jurnal Ilmiah Akuntansi Dan Keuangan, 5(9), 3717–3727.
Erdi, T. W., Agustin, W., Pradana, S. A. G., & Trisanti, T. (2022). CAMEL Ratio as an Indicator of Financial Distress Altman Z-Score Model with Company Size as a Moderating Variable. Journal of Applied Sciences in Accounting, Finance, and Tax, 5(2).
Fadhilah, K., Darminto, D. P., & Ahmar, N. (2023). Determinan Financial Distress Dengan Komite Audit Sebagai Pemoderasi. Jurnal Imu Manajemen Retail (JIMAT), 4(1), 33–47.
Ferdiansyah, F., & Widyarti, E. T. (2022). Analysis of CAMEL ratio on financial distress banking companies in Indonesia. Diponegoro International Journal of Business, 5(1), 47-56.
Harahap, A. M. (2016). Prediction of financial distress in foreign exchange banking firms using risk analysis, good corporate governance, earnings, and capital. The Indonesian Accounting Review, 5(1), 33-44.
Kowanda, D., Pasaribu, R., & Firdaus, M. (2015). Financial distress prediction on public listed banks in Indonesia stock exchange. Interdisciplinary Behavior and Social Sciences, 333-338.
Laila, N. (2017). Financial distress prediction using Bankometer model on Islamic and conventional banks: Evidence from Indonesia. International Journal of Economics and Management, 11(S1), 169-181.
Murni, Y., Astuti, T., Nisa, C., & Djaddang, S. (2017). Using CAMEL To Predict Management Behavior In Indonesia’s Sharia Bank. IOSR Journal of Business and Management, 19(03), 01-04.
Nufus, K., Audina, N., & Muchtar, A. (2018). Effect of Financial Distress Ratio Banking Company in Indonesia Period 2011-2015. Research Journal of Finance and Accounting, 9(16), 6875.
Paidar, A., Shafiee, M., Avazzadeh, F., & Valipour, H. (2021). Predicting Banks' Financial Distress by Data Envelopment Analysis Model and CAMELS Indicators. Journal of System Management, 7(3), 213-240.
Pasaribu, R. B. (2014, November). Financial Distress Prediction on Public Listed Banks in Indonesian Stock Exchange. In Proceeding, The 3rd International Congress on Interdisciplinary Behavior & Social Science.
Pratama, B. Y., & Aisjah, S. (2016). Prediksi Financial Distress Menggunakan Analisis Rasio Keuangan dan Zmijewski (Studi Pada Perusahaan Ritel yang Terdaftar di Bursa Efek Indonesia). Jurnal Ilmiah Mahasiswa FEB, 9(2), 1–16.
Purwantini, M., Yustrianthe, R. H., Jati, B. P., & Murwani, A. S. (2023). Studi Empiris Faktor Determinan Financial Distress. Owner, 7(2), 1271–1282.
Qurriyani, T. (2013). Early Detection of Potential Bank Bankruptcy Through Financial Ratio Analysis: Multinomial Logistic Regression Model. Available at SSRN 2379517.
Rokhayati, I., Dwi Purnomo, S., Retnowati, D., Winarto, H., Prabawa, A., & Kencana, H. (2022). Analysis of financial distress in banking companies listed on the indonesian stock exchange. Akuntabel, 19(2), 269–274.
Sjahrial, R., Priharta, A., Parewangi, A. M. A., & Hermiyetti, H. (2014, July). Modeling Financial Distress: The Case of Indonesian Banking Industry. In EcoMod Conference Proceedings.
Utami, D. W., Atmaja, H. E., & Hirawati, H. (2021). The Role of Financial Ratios on the Financial Distress Prediction. Kinerja, 25(2), 287–307.
Wardani, H. K., & Rachman, A. N. (2022). Analisis Financial Distress pada Perusahaan Manufaktur dan Property yang Terdaftar di BEI. Seminar Nasional Karya Ilmiah Multidisiplin, 2(1), 68–86.
Yusra, I., & Bahtera, N. T. (2021). Prediction modelling the financial distress using corporate governance indicators in Indonesia. Jurnal Kajian Manajemen Bisnis, 10(1), 18.