The Effect of RGEC on Financial Distress in Islamic Commercial Banks

Puput Fitriana (), Darmawati Darmawati and Angrum Pratiwi
Additional contact information
Puput Fitriana: Universitas Islam Negeri Sultan Aji Muhammad Idris Samarinda
Darmawati Darmawati: Universitas Islam Negeri Sultan Aji Muhammad Idris Samarinda
Angrum Pratiwi: Universitas Islam Negeri Sultan Aji Muhammad Idris Samarinda

EkBis: Jurnal Ekonomi dan Bisnis, 2022, vol. 6, issue 2, 100-111

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 quantitativemethodology 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 significantnegative effect on financial distress, while FDR has a significant positive effect on financial distress, while GCG, ROA, ROE, and CAR have no significant effect.

Keywords: Risk Profile; Good Corporate Governance; Earnings; Capital; Financial Distress (search for similar items in EconPapers)
JEL-codes: G01 G21 G33 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ejournal.uin-suka.ac.id/febi/ekbis/article/view/1578/1071 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:ekbisj:1578

Access Statistics for this article

EkBis: Jurnal Ekonomi dan Bisnis is currently edited by Achmad Nurdany

More articles in EkBis: Jurnal Ekonomi dan Bisnis from UIN Sunan Kalijaga Yogyakarta Contact information at EDIRC.
Bibliographic data for series maintained by Achmad Nurdany ().