EkBis: Jurnal Ekonomi dan Bisnis
Vol. 6 No. 2 (2022): EkBis: Jurnal Ekonomi dan Bisnis

The Effect of RGEC on Financial Distress in Islamic Commercial Banks

Puput Fitriana (Universitas Islam Negeri Sultan Aji Muhammad Idris Samarinda, Indonesia)
Darmawati (Universitas Islam Negeri Sultan Aji Muhammad Idris Samarinda, Indonesia)
Angrum Pratiwi (Universitas Islam Negeri Sultan Aji Muhammad Idris Samarinda, Indonesia)



Article Info

Publish Date
15 Dec 2022

Abstract

A bank's ability to grow depends on its ability to raise funds. If the bank does not have sufficient funds, the bank will face various risks, including liquidity risk or even financial difficulties. Businesses need to reduce the risk of financial distress and understand the elements that drive it. The purpose of this study was to examine the effect of Risk Profile, Good Coorporate Government, Earnings, and Capital (RGEC) on financial distress at Indonesian Islamic Banks. Associative descriptive quantitative methodology was used in this study. With secondary data from Islamic commercial banks in Indonesia, namely annual financial reports and GCG reports for the 2015-2020 period. Purposive sampling was used to select 9 out of 14 Islamic commercial banks in Indonesia. The independent variables are NPF, FDR, GCG, ROA, ROE, CAR, and the dependent variable is financial distress, which is calculated using the Altman Z-Score model. Using multiple linear regression analysis. The results show that NPF has a significant negative effect on financial distress, while FDR has a significant positive effect on financial distress, while GCG, ROA, ROE, and CAR have no significant effect.

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Journal Info

Abbrev

ekbis

Publisher

Subject

Economics, Econometrics & Finance

Description

EkBis: Jurnal Ekonomi dan Bisnis is an open access, peer reviewed journal, published by Fakultas Ekonomi dan Bisnis Islam, UIN Sunan Kalijaga Yogyakarta. EkBis invites researchers, academics, and practitioners to publish their original, conceptual, theoritical, and empirical research regarding the ...