Financial Distress of Registered Banking in Indonesia STOCK Exchange: Review of the Good Corporate Governance Aspect and Banking Performance



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Submitted Mar 26, 2021
Published Apr 19, 2021
10.24018/ejbmr.2021.6.2.832

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This study aims to analyse the effect of good corporate governance (GCG) mechanisms and financial performance on the Financial Distress of banks listed on the Indonesia Stock Exchange. What utilized a quantitative approach to collect the data. And the causal research design is used to examine the influences. The research population was 45 banks which are listed on the Indonesia Stock Exchange in 2019. The sample of this research was 15 banks that met the sampling criteria by purposive sampling. The results showed that Institutional, Managerial, Independent Commissioner Board Composition, Audit Committee, CAR, and LDR significantly affected financial distress. The Non-Performing Loan (NPL) has a positive and significant impact on economic desperation.

Keywords: Capital Adequacy Ratio, Non-Performing Loans, Loan to Deposit Ratio, GCG, Financial Distress

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