Abstract
This study aims to determine the factors that affect the financial distress condition of a banking company. Financial distress is proxied by non-performing loans, allowance for impairment losses, loan to deposit ratio, good corporate governance, gender diversity, firm age, net interest margin, and capital adequacy ratio. Samples were taken by the purposive sampling technique based on the specified criteria. This study uses data samples from all companies listed on the Indonesia Stock Exchange (IDX) with an observation period from 2014 to 2019. The analytical method used in this study is logistic regression. The results of the model feasibility test show that the logistic regression model is feasible to use for further analysis. The predictor variables simultaneously affect the financial distress condition of a banking company. Partially non-performing loans, allowance for impairment losses, loan to deposit ratio, and good corporate governance have a significant effect on the financial distress condition of a banking company. While the other predictor variables, namely, gender diversity, firm age, net interest margin, and capital adequacy ratio, partially have no significant effect on the financial distress condition of a banking company.
Published Version
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