ProBisnis : Jurnal Manajemen
Vol. 15 No. 4 (2024): August-September: Management Science

The Effect of Company Size and Financial Ratios on the Level of Financial Distress in Banking Sector

Endarto, Eko Agus Prasetyo (Unknown)
Mulyono, Mulyono (Unknown)



Article Info

Publish Date
02 Aug 2024

Abstract

Banking is an essential sector that improves a country's economy. The world economy has been shaken since the onset of the COVID-19 pandemic, along with global conflicts, which have caused many problems for banks. Banks in Indonesia also feel the impact, so banks need to survive well so as not to experience losses that lead to financial difficulties. This study uses financial ratios and company size to measure the effect of financial distress using the Altman Z-Score. The sample used is a bank listed on the Indonesia Stock Exchange from 2018 – 2022. Data processing using multiple regression with the help of SPSS statistical software. The results of this study found that the ratio of BOPO, ROA, and SIZE had a significant effect on financial distress. In contrast, the NPL, LDR, and BETA ratios did not have a significant effect. The following study can include environmental, social, and governance variables or ESG so that the application of sustainability activities can be measured in relation to financial distress.

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Journal Info

Abbrev

ProBisnis

Publisher

Subject

Humanities Computer Science & IT Economics, Econometrics & Finance Industrial & Manufacturing Engineering Social Sciences

Description

ProBisnis: The Management Journal was previously published in print, then in 2020 it was changed to online. This journal has ISSN: 2086-7654( Print) and ISSN: 2808-7240(Online). The scope of this journal is Economics, Management, Marketing, Strategic Management, Entrepreneurship, Leadership ...