Determinants of Distress Risk of Nepali Commercial Banks

This paper aims to examine the banks’ specific factors affecting distress risk. Using modified Altnan Z score as measure of distress risk, the study employed secondary data of 18 banks listed in Nepal Stock Exchange Limited for the study period from 2008 to 2014. The results show that the liquidity, profitability and size have the significant positive effect on z score indicating lower distress risk of firms. These results support the too big to fail doctrine and provides justification to increment of capital to 8 Arba by Nepal Rastra Bank. The study provides insight into the regulatory body and concerned authority of banks. Managers should make effort in maintaining the liquidity position of the bank and make effective strategy to earn higher profitability to avoid from being financially distressed.

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Measuring financial distress of non-bank financial institutions of Bangladesh using Altman’s Z-Score model

International Business Education Journal ◽

10.37134/ibej.vol13.sp.2.2020 ◽

2020 ◽

Vol 13 ◽

pp. 15-28

Author(s):

Mohammad Rifat Rahman ◽

Md. Mufidur Rahman ◽

Athkia Subat

Keyword(s):

Financial Institutions ◽

Financial Distress ◽

Stock Exchange ◽

Secondary Data ◽

Vital Role ◽

Annual Reports ◽

Z Score ◽

Factors Affecting ◽

Financial Soundness ◽

The Government

Non-bank financial institutions (NBFIs) are recognized as the fundamental of a financial market as they complement the banking institutions. Since 1981, NBFIs have been playing a vital role in the economic growth of Bangladesh. Unfortunately, in the recent years most of the NBFIs have been found financially distressed. However, few NBFIs that were included in our sample claimed themselves as potential companies with sound financial performance though it was highly criticized. Therefore, the motivation for conducting this study is to examine the financial soundness of selected NBFIs using Altman’s Z score (1995). This study involved 20 NBFIs out of 23 Dhaka Stock Exchange (DSE) listed institutions, which were selected based on information availability by considering A, B and Z categories from 2014 to 2018 period. The secondary data were collected from the annual reports of the selected companies over the period. The findings are as follows: 95% of the 20 NBFIs were in distress zone during the study period and only 5% NBFIs were in safe zone during 2017-2018 period. Therefore, the analysis predicted that within the upcoming years a few of the NBFIs will be approaching bankruptcy. Finally, it is suggested that the government, respective regulatory authority, and policy makers to pay an immediate attention on mitigating the factors affecting the financial distress.

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PENGARUH JUMLAH DEWAN DIREKSI DAN SHAREHOLDER EQUITY TO TOTAL ASSET RATIO TERHADAP FINANCIAL DISTRESS (Studi Pada Perusahaan Manufaktur yang Terdaftar Di BEI Tahun 2012-2015 )

Jurnal Ekonomi ◽

10.24912/je.v22i3.282 ◽

2017 ◽

Vol 22 (3) ◽

Author(s):

Michelle Kristian

Keyword(s):

Financial Distress ◽

Sampling Method ◽

Stock Exchange ◽

Secondary Data ◽

Z Score ◽

Purposive Sampling ◽

Multiple Regression Method ◽

Equity Ratio ◽

Score Model ◽

Positive Effect

The objective of this research was to examine the directors size and shareholderequity ratio towards financial distress. In this research, directors size measured by its size and shareholder equity ratio measured by comparing shareholder equity to total assets, while financial distress was measured by Altman Z-Score Model with five ratios.The object in this research was companies that are experiencing financial distress and were listed at Indonesia Stock Exchange (IDX) for period 2012 until 2015. The sample was selected by using purposive sampling method and the secondary data used in this research was analyzed by using multiple regression method. In total, there were 22 companies that fulfill the requirements set by the researcher.The results of this research were directors size and shareholder equity ratio simultaneously had significant effect on financial distress. Directors size had no positive effect on financial distress and Shareholder equity ratio had positive significant effect on financial distress. Tujuan dari penelitian ini adalah untuk menguji ukuran direksi dan rasio ekuitas pemegang saham terhadap tekanan keuangan. Dalam penelitian ini, ukuran direksi diukur dengan ukuran dan rasio ekuitas pemegang saham yang diukur dengan membandingkan ekuitas pemegang saham dengan total aset, sedangkan financial distress diukur dengan Altman Z-Score Model dengan lima rasio. Objek dalam penelitian ini adalah perusahaan yang mengalami financial distress. dan terdaftar di Bursa Efek Indonesia (BEI) untuk periode 2012 sampai 2015. Sampel dipilih dengan menggunakan metode purposive sampling dan data sekunder yang digunakan dalam penelitian ini dianalisis dengan menggunakan metode regresi berganda. Secara keseluruhan, ada 22 perusahaan yang memenuhi persyaratan yang ditetapkan oleh peneliti. Hasil penelitian ini adalah rasio direksi dan rasio ekuitas pemegang saham secara simultan berpengaruh signifikan terhadap financial distress. Ukuran Direksi tidak berpengaruh positif terhadap financial distress dan rasio ekuitas pemegang saham berpengaruh positif signifikan terhadap financial distress.

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ANALISA KESEHATAN KEUANGAN PERUSAHAAN UNTUK MEMPREDIKSI KEBANGKRUTAN PERUSAHAAN DENGAN MENGGUNAKAN METODE ALTMAN (STUDI KASUS PADA PERUSAHAAN MANUFAKTUR SEKTOR KOMPONEN OTOMOTIF YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2011 – 2015)

Jurnal Ilmiah Binaniaga ◽

10.33062/jib.v13i2.299 ◽

2019 ◽

Vol 13 (2) ◽

pp. 55

Author(s):

Indar Khaerunnisa ◽

Edy Cahyadi

Keyword(s):

Motor Vehicle ◽

Stock Exchange ◽

Secondary Data ◽

Z Score ◽

Financial Ratio ◽

Average Value ◽

Automotive Components ◽

Grey Area ◽

Financial Ratio Analysis ◽

Year 2013

The Indonesian government has set the motor vehicle industry as one of the priority industries of the national interest, economic growth, and increased productivity. In order for the survival of a company is maintained, then the management should be able to maintain or even more spur increased performance. Various analyzes were developed to predict the beginning of the bankruptcy of the company. One analysis is widely used today is the analysis of Altman Z-Score, which this analysis refers to the financial ratios of the company. The purpose of this study was to analyze the bankruptcy of the automotive components companies that go public in Indonesia Stock Exchange year period 2011–2015. This study used a sample of four companies from the automotive components sector. Source of data is done by using secondary data. The data is processed by the method of the Z-score formula Z = 1,2X1 + 1,4X2 + 3,3X3 + 0,6X4 + 0,999X5. With the description of Z < 1,8 the company categorized into unhealthy/will be bankrupt, the value Z 1,8 < 2,99 the company is considered to be in the uncertain/grey area and the value of Z > 2,99 then the company is in a very healthy. In general, the results of these studies indicate that the four automtive components companies namely PT Astra Otoparts year 2011 value of Z = 14,67 year 2012 value of Z = 10,88 year 2013 value of Z = 13,90 year 2014 value of Z = 10,54 year 2015 value of Z = 4,94, PT Gajah Tunggal year 2011 value of Z = 5,72 year 2012 value of Z = 4,75 year 2013 value of Z = 3,10 year 2014 value of Z = 2,79 year 2015 value of Z = 1,58 and the average value of 2011-2015 periode Z = 3,59, PT Goodyear Indonesia year 2011 value of Z = 2,07 year 2012 value of Z = 2,44 year 2013 value of Z = 2,57 year 2014 value of Z = 2,02 year 2015 value of Z = 2,76, PT Indomobil Sukses Internasional year 2011 value of Z = 6,19 year 2012 value of Z = 3,99 year 2013 value of Z = 3,17 year 2014 value of Z = 2,59 year 2015 value of Z = 1,74. The average value 2011-2015 period showed 3 companies are in very healthy state and 1 company is in the uncertain/grey area. Keywords: Financial Ratio Analysis, Analysis of bankruptcy, Altman Z-Score Analysis, Automotive Components Company, Go Public.

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The Effect of Bankruptcy Possibility on Audit Delay and Timeliness (Empirical Study on Manufacturing Companies Listed in Indonesian Stock Exchange in the Period of 2012-2016)

INDONESIAN JOURNAL OF ACCOUNTING AND GOVERNANCE ◽

10.36766/ijag.v2i2.20 ◽

2019 ◽

Vol 2 (2) ◽

pp. 118-146

Author(s):

Triana Meinarsih ◽

Abdul Yusuf ◽

Muhammad Zilal Hamzah

Keyword(s):

Quantitative Research ◽

Stock Exchange ◽

Secondary Data ◽

Annual Reports ◽

Manufacturing Companies ◽

Z Score ◽

Quality Of Accounting Information ◽

Independent Variable ◽

A Company

Audit delay and timeliness are important factors that influence the quality of accounting information in term of relevance. This study provides empirical evidence to answer the question of how bankruptcy possibility impacts on audit delay and timeliness. This research studies manufacturing firms listed in Indonesian Stock Exchange (IDX) in the period of 2012-2016. Data are taken from official website of IDX. This study is a quantitative research that seek to find out relationship between independent variable and dependent variable. External secondary data used are annual reports accessed from IDX website. Measurement used is Z-Score Altman model prediction, while simple linear regression is employed as technical analysis. This study finds that bankruptcy possibility which is measured by ZScore is negatively influence audit delay and timeliness. Any decrease of Z-Score shows the possibility of a company experience bankruptcy and therefore causes audit delay and timeliness.

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PENGARUH KONSERVATISME AKUNTANSI DAN PENGHINDARAN PAJAK TERHADAP NILAI PERUSAHAAN

JURNAL AKUNTANSI BERKELANJUTAN INDONESIA ◽

10.32493/jabi.v2i2.y2019.p134-147 ◽

2019 ◽

Vol 2 (2) ◽

pp. 134

Author(s):

Puradinda Zulfiara ◽

Juli Ismanto

Keyword(s):

Firm Value ◽

Stock Exchange ◽

Tax Avoidance ◽

Secondary Data ◽

Accounting Conservatism ◽

Annual Reports ◽

Manufacturing Companies ◽

Effective Tax Rate ◽

Tax Rate ◽

Positive Effect

Aim of this research is to determine the effect of accounting conservatism and tax avoidance on firm value. The type of data used in this study is secondary data in the form of annual reports of manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2013-2016 period. The number of samples is 48 manufacturing companies. The data analysis technique used is regression analysis. The results of the study show that conservatism has a positive effect on firm value, tax avoidance has a negative effect on firm value. While simultaneously conservatism and tax avoidance have a positive effect on firm value. Thus this study supports that accounting conservatism has a role as a function of monitoring the company's investment policies and one way to maintain the value of the company in limiting losses that may arise from poorly performing investment decisions. The company that conducts tax avoidance (has a smaller effective tax rate) is an effort made by management to reduce the company's tax burden and is able to minimize expenditure for tax purposes so that management looks good in the eyes of shareholders.

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Pengaruh Mekanisme Bonus, Exchange Rate, Intangible Assets, dan Kompensasi Rugi Fiskal Terhadap Keputusan Perusahaan Melakukan Transfer Pricing

JURNAL EKSPLORASI AKUNTANSI ◽

10.24036/jea.v2i3.272 ◽

2020 ◽

Vol 2 (3) ◽

pp. 3125-3143

Author(s):

Weni Avri Rahman ◽

Charoline Cheisviyanny

Keyword(s):

Exchange Rate ◽

Sampling Method ◽

Intangible Assets ◽

Stock Exchange ◽

Transfer Pricing ◽

Secondary Data ◽

Total Sample ◽

Analysis Method ◽

Loss Compensation ◽

Positive Effect

This research aims to examine to analyze the effect of bonus scheme, exchange rate, intangible assets, and fiscal loss compensation on the company’s decision to do transfer pricing. The population in this research are all of the companies listed in Indonesia Stock Exchange (IDX) in 2014 until 2018. The sample of study was determined by using purposive sampling method, and that total sample 93 companies. The data used secondary data and collected by documentation at www.idx.com. This research use logistic regression analysis as analysis method. The result of analysis in this research showed that bonus scheme, exchange rate, and fiscal loss compensation had no effect on the company’s decision to do transfer pricing. Intangible Assets had a positive effect on the company’s decision to do transfer pricing

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Factors Affecting the Earning Response Coefficient with Real Activities Earning Management as Moderator: Evidence from Indonesia Stock Exchange

Asian Journal of Economics Business and Accounting ◽

10.9734/ajeba/2019/v11i230124 ◽

2019 ◽

pp. 1-14 ◽

Cited By ~ 1

Author(s):

Aminullah Assagaf ◽

Etty Murwaningsari ◽

Juniati Gunawan ◽

Sekar Mayangsari

Keyword(s):

Stock Return ◽

Sampling Method ◽

Capital Expenditure ◽

Stock Exchange ◽

Financial Statements ◽

Short Term ◽

Factors Affecting ◽

Earnings Per Share ◽

Negative Effect ◽

Positive Effect

This study aims to explain the phenomenon of the most active companies traded shares in Indonesian stock exchange. This research is motivated to analyze the response of investors to take a decision after presenting the company's financial statements. This study uses panel data consisting of 20 companies selected by purposive sampling method, using a regression model and data processing via SPSS 24. The results of this study found that the variable leverage and capital expenditure variables significantly influence the response of investors to execute the company's stock, thereby affecting the stock return. The level of leverage and significant positive effect on the response of investors, particularly due to the use of debt to investment would increase earnings per share or at a certain amount of equity can boost earnings per share acquisition. Capital expenditure and significant negative effect on the response of investors for investor tend to speculate on short-term period, which means that companies that invest in the early stages will have difficulties liquidity and rate of return will decline, so investors will shift their investment.

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Pengaruh debt to equity ratio dan current ratio terhadap nilai perusahaan dengan return on asset sebagai variabel intervening

Jurnal Riset Mahasiswa Akuntansi ◽

10.21067/jrma.v8i2.5231 ◽

2021 ◽

Vol 8 (2) ◽

Author(s):

Meliani Imanah ◽

Alfinur ◽

Supami Wahyu Setiyowati

Keyword(s):

Path Analysis ◽

Firm Value ◽

Stock Exchange ◽

Secondary Data ◽

Total Sample ◽

Return On Assets ◽

Current Ratio ◽

Endogenous Variables ◽

Equity Ratio ◽

Positive Effect

This study aims to analyze the effect of debt to equity ratio and current ratio on firm value with return on assets as an intervening variable on food and beverages companies listed on the Indonesia Stock Exchange for the period of 2016-2018. The study uses secondary data from the annual report through access to www.idx.co.id. Data were analyzed using path analysis. The total sample of 13 companies and the method of taking sample members used is purposive sampling. The variables of this study consisted of debt to equity ratio and current ratio as exogenous variables, firm value as endogenous variables, and return on assets as intervening variables. The analysis shows that the debt to equity ratio, current ratio and return on assets have a positive effect on firm value. Debt to equity ratio and current ratio also have a positive effect on return on assets. Based on the results of the path analysis of the implications of this research that return on assets can not affect the relationship between debt to equity ratio and current ratio to the firm value so that it can provide input to researchers. It is better to add research periods and use a sample of several other sectors and can also use variables others that can strengthen the results of previous studies

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TATA KELOLA, KOMPENSASI CEO, KARAKTERISTIK CEO, ACCOUNTING IRREGULARITIES DAN TAX AGGRESSIVENESS

Jurnal Akuntansi Trisakti ◽

10.25105/jat.v6i2.5451 ◽

2019 ◽

Vol 6 (2) ◽

pp. 285

Author(s):

Ririn Juliawaty ◽

Christina Dwi Astuti

Keyword(s):

Corporate Governance ◽

Ceo Compensation ◽

Stock Exchange ◽

Secondary Data ◽

Analysis Model ◽

Tax Aggressiveness ◽

Ceo Tenure ◽

Negative Effect ◽

Independent Variable ◽

Positive Effect

The purpose of this research is to examine the effect of corporate governance, CEO characteristic, CEO compensation, and accounting irregularities on tax aggressiveness. The dependent variable in this research is tax aggressiveness, while the independent variable in this research are corporate governance, characteristic CEO and CEO compensation.This study used secondary data with entire population manufacture companies listed at the Indonesia Stock Exchange (BEI) for 2015 -2017. The research sample are consists of 37 companies. The sampling method used to determine the sample is purposive sampling. The analysis model used in this research is multiple regression of panel data.Based on analytical results concluded that independent director have a significant and negative effect on tax aggressiveness while accounting irregularities has a significant and positive effect on tax aggressiveness. The board size, CEO compensation, age, and CEO tenure have no significant effect on tax aggressiveness.

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Factors Affecting The Company's Value Through Sustainability Reports In The Indonesia Stock Exchange

Proceedings of the ICECRS ◽

10.21070/picecrs.v1i2.1436 ◽

2018 ◽

Vol 1 (2) ◽

Author(s):

Pratiwi Dwi Karjati ◽

Eva Winarto

Keyword(s):

Financial Performance ◽

Firm Value ◽

Stock Exchange ◽

Secondary Data ◽

Sustainability Reporting ◽

Public Attention ◽

Corporate Values ◽

Factors Affecting ◽

The Right ◽

Sustainability Report

The company's financial performance that demonstrates the success of the company is a matter of interest to the public. While the Sustainability Report is a non-financial report that is beginning to draw public attention today. This study aims to examine how the influence of financial performance on corporate value through Sustainability Report that can be used as a Reference for User Financial Statements in the decision of the right decision. The sample of this study are Companies listed in Indonesia Stock Exchange in 2015 - 2016. Independent variables in this research are Profitability Variables, Liquidity Variables, Leverage Variables measured using Financial Ratios, Mediation Variables in this study is Sustainability Report measured by using Index Disclosures derived from the Global Initiative Reporting (GRI) and Dependent Variables are Corporate Values measured using Tobins'Q. This study uses secondary data obtained at Indonesia Stock Exchange.The results of this study indicate that net profit margin, current ratio and leverage (X) have no significant effect on both sustainability reporting (Z) and the dependent variable of firm value (Y). The results of this study also proves that only the sustainability reporting (Z) Intervening variable has significant effect on the dependent variable of firm value (Y).

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