Financial Distress Analysis of Registered Insurance Companies in Indonesia Stock Exchange 2015-2019



Abstract Views
848

Downloads
834

Citations

Share

##plugins.themes.bootstrap3.article.sidebar##

Submitted Nov 6, 2020
Published Nov 19, 2020
10.24018/ejbmr.2020.5.6.603

Abstract viewed = 848 times

Table of Contents

##plugins.themes.bootstrap3.article.main##

This study aims to analyze the insurance financial ratio such as underwriting ratio, loss ratio, investment yield ratio, liability to liquid asset ratio, net premium growth ratio, technical reserve ratio and risk based capital to potential financial distress. The population in this study were all insurance subsector companies listed on the Indonesia Stock Exchange for the period 2015 to 2019. The sampling technique used was the purposive sampling method so that a research sample of 10 companies was obtained. The data analysis technique used logistic regression analysis method. The results showed that the underwriting ratio, net premium growth ratio, and risk based capital had a significant and negative effect on the potential for financial distress. Loss ratio, liability to liquid asset ratio, and technical reserve ratio have a significant and positive effect on the potential for financial distress while the investment yield ratio has no significant effect in predicting the potential for financial distress.

Keywords: insurance subsector, financial ratio, logistic regression, risk based capital, financial distress

Downloads

Download data is not yet available.

References

  1. Iskandar, K., Fuad, M.N., Wirasadi, F dan Sendra, K. 2011. Dasar Dasar Asuransi : Jiwa, Kesehatan dan Anuitas. Asosiasi Ahli Manajemen Asuransi Indonesia (AAMAI). Jakarta.
     Google Scholar
  2. Sihombing, Pardomuan. 2018. Corporate Financial Management. Percetakan IPB. Jawa Barat.
     Google Scholar
  3. Cahyaningtyas, I., Sriwidodo, U dan Utami, S.S. 2016. “Analisis Financial Distress Menggunakan Model Altman Z-Score Pada Perusahaan Asuransi Yang Listing Di Bursa Efek Indonesia Tahun 2011 – 2014”. Jurnal Ekonomi dan Kewirausahaan, Vol. 16 No. 2, 287-293.
     Google Scholar
  4. Dewi, T.T.C and Mahfudz. 2016. “Effect of Change in Surplus Ratio, Incurred Loss Ratio, Liquidity Ratio, Premium Growth Ratio, Firm Size and Risk Based Capital to Predict The Posibilities of Financial Distress: The Case of Indonesian Non-Life Insurance Listed in Indonesia Insurance Directory”. Diponegoro Journal of Management, Vol. 5 No. 3 e-ISSN 2337-3792, 1-17.
     Google Scholar
  5. Rofiudin, M., Masichah dan Afifudin. 2019. “Analisis Pengaruh Rasio Keuangan Risk Based Capital dan Early Warning System Terhadap Financial Solvency Pada Perusahaan Asuransi Jiwa Syariah di Indonesia”. Jurnal E-JRA, Vol. 8 No. 3, 81-97.
     Google Scholar
  6. Primayanti, A and Arfianto, E.D. 2016. “The Determinant Of Financial Health On Sharia Life Insurance Company (Empirical Research on Sharia Life Insurance)”. Diponegoro Journal of Management, Vol. 5 No. 3 e-ISSN 2337-3792, 1-14.
     Google Scholar
  7. Desiyanti, O., Soedarmono, W., Chandra, K and Kusnadi. 2019. “The Effect of Financial Ratios to Financial Distress Using Altman Z-Score Method in Real Estate Companies Listed in Indonesia Stock Exchange Period 2014 – 2018”. Journal Business and Entrepreneurial, Vol. 19 No. 2 e-ISSN 2252-4614 p-ISSN 0853-9189, 119-136.
     Google Scholar
  8. Platt, H.D dan Platt M.B. 2002. “Predicting Corporate Financial Distress: Reflections on Choice-Based Sample Bias”. Journal of Economics and Finance, Vol. 26 No. 2, 184-199.
     Google Scholar
  9. Zamachsyari, A.Z dan Amanah, L. 2016. “Pengaruh Kinerja Keuangan Dan Ukuran Perusahaan Terhadap Financial Distress”. Jurnal Ilmu dan Riset Akuntansi, Vol. 5 No. 11 ISSN 2460-0585, 1-15.
     Google Scholar
  10. Kordestani G., BIglari,V dan Bakhtiari, M. 2011. “Ability of Combination of Cash Flow Components to Predict Financial Distress”. Bussiness: Theory and Practice, Vol.12 No.3 e-ISSN 1822-4202 p-ISSN 1648-0627, 277-285.
     Google Scholar
  11. Sormunen, N and Laitinen T. 2012. “Late Financial Distress Process Stage and Financial Ratios: Evidence for Auditors’ Goingconcern Evaluation” Liketaloudelinen Aikakauskirja No.1, pp. 41-69.
     Google Scholar
  12. Sugiyono. 2018. Metode Penelitian Kuantitatif Kualitatif dan R&D. Alfabeta. Bandung.
     Google Scholar
  13. Nurviani, D.I dan Oetomo, H.W. 2018. “Pengaruh Financial Leverage, Ukuran Perusahaan dan Arus Kas Terhadap Financial Distress Pada Perusahaan Property Dan Real Estate”. Jurnal Ilmu dan Riset Manajemen, Vol. 7 No. 1 e-ISSN 2461-2593, 1-17.
     Google Scholar
  14. Ramdani, S dan Wijaya, I. 2019. “Prediksi Financial Distress Menggunakan Pertumbuhan Penjualan dan Corporate Governance Pada Perusahaan Sektor Pertambangan”. Jurnal MONEX Vol. 8 No. 2 E-ISSN 2549-5046 P-ISSN 2089-5321, 34-45.
     Google Scholar
  15. Ghozali, Imam. 2018. Aplikasi Analisis Multivariate dengan Program IBM SPSS 25 Update PLS Regresi. Semarang: Badan Penerbit Universitas Diponegoro.
     Google Scholar
  16. Fatmawati, V dan Rihardjo, I.B. 2017. “Dampak Faktor Eksternal Dan Internal Pengaruh Likuiditas, Leverage, Aktivitas dan Profitabilitas Dalam Memprediksi Financial Distress”. Jurnal Ilmu dan Riset Akuntansi, Vol. 6 No. 10 e-ISSN 2460-0585, 1-19.
     Google Scholar
  17. Zelie, E.M. 2019. “Determinants of Financial Distress in Case of Insurance Companies in Ethiopia”. Research Journal of Finance and Accounting, Vol. 10 No. 15 e-ISSN 2222-2847 p-ISSN 2222-1697, 27-32.
     Google Scholar
  18. Deitiana, T. 2019. “Financial Early Warnings Signal on Stock Price Changes on Insurance Companies of Indonesian Stock Exchange”. International Journal of Business, Economics and Law. Vol. 20 No. 1 ISSN 2289-1552, 22-26.
     Google Scholar
  19. Nurlatifah, A.F dan Mardian, S. 2016. “Kinerja Keuangan Perusahaan Asuransi Syariah di Indonesia: Surplus On Contribution (SOC)”. Jurnal Ilmu Akuntansi, Vol. 9 No. 1 e-ISSN 2461-1190 p-ISSN 1979-858X, 73-96.
     Google Scholar
  20. Markonah, Sudiro, A., Surachman and Rahayu, M. 2019. “The Effect of Corporate Governance and Premium Growth on the Performance of Insurance Companies in Indonesia”. European Research Studies Journal, Vol. 22 No. 2, 367-383.
     Google Scholar