{"title":"Financial Distress Prediction Using RGEC Model on Foreign Exchange Banks and Non-Foreign Exchange Banks","authors":"L. Africa","doi":"10.33005/JASF.V2I1.34","DOIUrl":null,"url":null,"abstract":"The bankruptcy of a company can be marked called Financial Distress, and the company is expected to anticipate the situation. This research aimed to analyze whether the RGEC model can be used to predict Financial Distress on Foreign Exchange Banks and Non-Foreign Exchange Banks. The RGEC model uses several ratios including Risk Profile represented by NPL (Non-Performing Loan) LDR (Loan to Deposit Ratio), GCG is represented by the Composite Value of GCG (Good Corporate Governance), Earnings is represented by ROA (Return On Asset), and Capital is represented by CAR (Capital Adequacy Ratio). It is a quantitative study, with a sample of 185 data of Foreign Exchange Bank and Non-Foreign Exchange ranging from 2013 to 2017, and fulfills this criterion for research from IDX. Logistic regression was used in analyzing data and using SPSS version of IBM 23. The results of the study indicate that NPL, GCG, ROA, and CAR are best used to predict financial distress in Foreign Exchange Bank and Non-Foreign Exchange Bank. The results can be applied to banking companies in determining what policies need to be taken when the company experiences Financial Distress.","PeriodicalId":365167,"journal":{"name":"Journal of Accounting and Strategic Finance","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2019-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"5","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Accounting and Strategic Finance","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.33005/JASF.V2I1.34","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 5
Abstract
The bankruptcy of a company can be marked called Financial Distress, and the company is expected to anticipate the situation. This research aimed to analyze whether the RGEC model can be used to predict Financial Distress on Foreign Exchange Banks and Non-Foreign Exchange Banks. The RGEC model uses several ratios including Risk Profile represented by NPL (Non-Performing Loan) LDR (Loan to Deposit Ratio), GCG is represented by the Composite Value of GCG (Good Corporate Governance), Earnings is represented by ROA (Return On Asset), and Capital is represented by CAR (Capital Adequacy Ratio). It is a quantitative study, with a sample of 185 data of Foreign Exchange Bank and Non-Foreign Exchange ranging from 2013 to 2017, and fulfills this criterion for research from IDX. Logistic regression was used in analyzing data and using SPSS version of IBM 23. The results of the study indicate that NPL, GCG, ROA, and CAR are best used to predict financial distress in Foreign Exchange Bank and Non-Foreign Exchange Bank. The results can be applied to banking companies in determining what policies need to be taken when the company experiences Financial Distress.
一个公司的破产可以标记为财务困境,公司预计会预料到这种情况。本研究旨在分析RGEC模型是否可用于预测外汇银行和非外汇银行的财务困境。RGEC模型使用了几种比率,包括NPL(不良贷款)LDR(贷款与存款比率)代表的风险概况,GCG由GCG(良好公司治理)的综合价值代表,收益由ROA(资产收益率)代表,资本由CAR(资本充足率)代表。本研究是一项定量研究,样本为2013 - 2017年外汇银行和非外汇的185个数据,符合IDX研究的这一标准。数据分析采用Logistic回归,采用SPSS version IBM 23。研究结果表明,不良贷款率、GCG、ROA和CAR最适合用于外汇银行和非外汇银行的财务困境预测。研究结果可以应用于银行公司,以确定当公司经历财务困境时需要采取哪些政策。