THE EFFECT OF FINANCIAL RATIO ON FINANCIAL DISTRESS IN INDONESIA SHARIA COMMERCIAL BANKS
n early warning system can be implemented to anticipate the presence of financial distress, which will threaten financial problems. Altman Z-score is a tool for predicting a company's bankruptcy level by calculating several financial ratios. This study aimed t...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Fakultas Ekonomi dan Bisnis Islam
2023-12-01
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| Series: | I-Finance |
| Subjects: | |
| Online Access: | http://jurnal.radenfatah.ac.id/index.php/I-Finance/article/view/19180/6379 |
| _version_ | 1797348539066482688 |
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| author | Wardah Mujadidah Hananiyah Tiara Juliana Jaya |
| author_facet | Wardah Mujadidah Hananiyah Tiara Juliana Jaya |
| author_sort | Wardah Mujadidah Hananiyah |
| collection | DOAJ |
| description | n early warning system can be implemented to anticipate the presence of financial distress, which will threaten financial problems. Altman Z-score is a tool for predicting a company's bankruptcy level by calculating several financial ratios. This study aimed to see whether finances can affect financial distress in Indonesian Islamic Banks. This study used Eviews software version 10 with panel data analysis techniques. The research object is the Indonesian Sharia Commercial Bank, which published semiannual financial reports from 2017-2022. Based on information on the official OJK website, there are 12 Islamic Commercial Banks, but only 9(nine) banks meet the sample criteria in this study. The results of the study show that ROA and CR have a significant positive effect on financial distress. Meanwhile, ROE and DER have a significant negative effect on financial distress. Unlike the case with NPF, which has no significant effect on financial distress. |
| first_indexed | 2024-03-08T12:07:26Z |
| format | Article |
| id | doaj.art-1eee30ffae34457b93d3c6769d2bf7d2 |
| institution | Directory Open Access Journal |
| issn | 2476-8871 2615-1081 |
| language | English |
| last_indexed | 2024-03-08T12:07:26Z |
| publishDate | 2023-12-01 |
| publisher | Fakultas Ekonomi dan Bisnis Islam |
| record_format | Article |
| series | I-Finance |
| spelling | doaj.art-1eee30ffae34457b93d3c6769d2bf7d22024-01-23T05:38:45ZengFakultas Ekonomi dan Bisnis IslamI-Finance2476-88712615-10812023-12-019214816710.19109/ifinance.v9i2.19180THE EFFECT OF FINANCIAL RATIO ON FINANCIAL DISTRESS IN INDONESIA SHARIA COMMERCIAL BANKSWardah Mujadidah Hananiyah0Tiara Juliana Jaya1Universitas Islam Negeri Maulana Malik Ibrahim Malang IndonesiaUniversitas Islam Negeri Maulana Malik Ibrahim Malang Indonesian early warning system can be implemented to anticipate the presence of financial distress, which will threaten financial problems. Altman Z-score is a tool for predicting a company's bankruptcy level by calculating several financial ratios. This study aimed to see whether finances can affect financial distress in Indonesian Islamic Banks. This study used Eviews software version 10 with panel data analysis techniques. The research object is the Indonesian Sharia Commercial Bank, which published semiannual financial reports from 2017-2022. Based on information on the official OJK website, there are 12 Islamic Commercial Banks, but only 9(nine) banks meet the sample criteria in this study. The results of the study show that ROA and CR have a significant positive effect on financial distress. Meanwhile, ROE and DER have a significant negative effect on financial distress. Unlike the case with NPF, which has no significant effect on financial distress.http://jurnal.radenfatah.ac.id/index.php/I-Finance/article/view/19180/6379financial distressaltman z-scorefinancial ratios |
| spellingShingle | Wardah Mujadidah Hananiyah Tiara Juliana Jaya THE EFFECT OF FINANCIAL RATIO ON FINANCIAL DISTRESS IN INDONESIA SHARIA COMMERCIAL BANKS I-Finance financial distress altman z-score financial ratios |
| title | THE EFFECT OF FINANCIAL RATIO ON FINANCIAL DISTRESS IN INDONESIA SHARIA COMMERCIAL BANKS |
| title_full | THE EFFECT OF FINANCIAL RATIO ON FINANCIAL DISTRESS IN INDONESIA SHARIA COMMERCIAL BANKS |
| title_fullStr | THE EFFECT OF FINANCIAL RATIO ON FINANCIAL DISTRESS IN INDONESIA SHARIA COMMERCIAL BANKS |
| title_full_unstemmed | THE EFFECT OF FINANCIAL RATIO ON FINANCIAL DISTRESS IN INDONESIA SHARIA COMMERCIAL BANKS |
| title_short | THE EFFECT OF FINANCIAL RATIO ON FINANCIAL DISTRESS IN INDONESIA SHARIA COMMERCIAL BANKS |
| title_sort | effect of financial ratio on financial distress in indonesia sharia commercial banks |
| topic | financial distress altman z-score financial ratios |
| url | http://jurnal.radenfatah.ac.id/index.php/I-Finance/article/view/19180/6379 |
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