Mampukah Good Corporate Governance dan Risiko Kredit Sebagai Prediktor Financial Distress?

Abstract

This study aims to predict financial distress at Bank foreign exchange (BUSN) by using GCG analysis, credit risk, profitability, capital adequacy ratio and bank size. GCG, credit risk, and profitability. The population in this research is 35 BUSN of foreign exchange registered in Bank Indonesia. Sampling technique used purposive sampling. The sample size is 17 banks. Data analysis technique using linear regression. This research performs 4 regression test that is in BUSN of foreign exchange for all condition, financial distress condition, gray area condition, and condition of non financial distres. The results of this study indicate that GCG and credit risk have no effect on fianansial pressure for all conditions, financial distress condition, gray area condition, and non-financial distress condition. Profitability affects financial difficulties for all conditions, gray area conditions and non-financial distress conditions. CAR affects financial difficulties for all conditions, gray area conditions and non-financial pressure conditions. Profitability and CAR have no effect on financial difficulties for gray area conditions. The size of the bank affects financial difficulties in all conditions and grays, whereas in the financial distress position the size of the bank does not affect financial distress.