Research Article
Financial Ratio, Good corporate governance and Financial Distress: A Grover Model at a Transportation Firm
@INPROCEEDINGS{10.4108/eai.2-8-2023.2341490, author={Nurcahyono Nurcahyono and Fatmasari Sukesti and Alwiyah Alwiyah and Dina Ermawati}, title={Financial Ratio, Good corporate governance and Financial Distress: A Grover Model at a Transportation Firm}, proceedings={Proceedings of the 1st International Conference on Economics and Business, ICEB 2023, 2-3 August 2023, Padang, Sumatera Barat, Indonesia}, publisher={EAI}, proceedings_a={ICEB}, year={2024}, month={6}, keywords={operating capacity sales growth cash flow leverage gcg financial distress}, doi={10.4108/eai.2-8-2023.2341490} }- Nurcahyono Nurcahyono
Fatmasari Sukesti
Alwiyah Alwiyah
Dina Ermawati
Year: 2024
Financial Ratio, Good corporate governance and Financial Distress: A Grover Model at a Transportation Firm
ICEB
EAI
DOI: 10.4108/eai.2-8-2023.2341490
Abstract
This research was conducted to predict the potential for financial stress by using operating capacity, operating cash flow, and good corporate governance mechanisms as part of risk management. the transportation sector listed on the Indonesia Stock Exchange from 2016 to 2020 is the population of this study. This study uses a purposive sampling technique with 100 observations from 20 transportation sector companies. The measure of the study model to prognosticate financial distress uses multiple linnear regresssion with using Z- Score. According to the study's findings, the low mobility of the deceased during the COVID-19 outbreak caused sales at several transportation-related businesses to decline. Additionally, poor operational performance results in financial difficulty because it has a favorable effect on tax torture. Financial distress is unaffected by transaction growth and cash inflows, hence it is unaffected by the value of transaction growth and cash inflows.