Proceedings of the 15th International Symposium on Management (INSYMA 2018)

Financial performance, corporate governance, and financial distress

Authors
Endang Ernawati, Samantha Elysia Handojo, Werner R. Murhadi
Corresponding Author
Endang Ernawati
Available Online March 2018.
DOI
https://doi.org/10.2991/insyma-18.2018.9How to use a DOI?
Keywords
financial distress, financial ratio, good corporate governance
Abstract

This study aims to analyze the effect of financial ratios and corporate governance on financial distress by making a prediction model of bankruptcy using data from non-financial sector companies listed on the Indonesia Stock Exchange (IDX). This research used the quantitative approach with a logistic regression model. The samples used in this study were 310 companies from the non-financial sector with 1550 observations. The research findings suggested that the variables included in the model are current liabilities to total assets, total liabilities to total assets, book-to-market value, blockholder ownership, sales to total assets, earnings before interest, and taxes to total assets. While the audit opinion variable has no significant effect. Although not all the variables which have been incorporated into the model were significant, the insignificant variables still remained in the model to improve the accuracy of the prediction model. The results suggested that the accuracy of this bankruptcy prediction model was 98.1%.

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 15th International Symposium on Management (INSYMA 2018)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
March 2018
ISBN
978-94-6252-475-0
ISSN
2352-5398
DOI
https://doi.org/10.2991/insyma-18.2018.9How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Endang Ernawati
AU  - Samantha Elysia Handojo
AU  - Werner R. Murhadi
PY  - 2018/03
DA  - 2018/03
TI  - Financial performance, corporate governance, and financial distress
BT  - Proceedings of the 15th International Symposium on Management (INSYMA 2018)
PB  - Atlantis Press
SP  - 35
EP  - 39
SN  - 2352-5398
UR  - https://doi.org/10.2991/insyma-18.2018.9
DO  - https://doi.org/10.2991/insyma-18.2018.9
ID  - Ernawati2018/03
ER  -