Proceedings of the 1st International Conference on Economics and Business, ICEB 2023, 2-3 August 2023, Padang, Sumatera Barat, Indonesia

Research Article

Financial Ratio, Good corporate governance and Financial Distress: A Grover Model at a Transportation Firm

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  • @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
Nurcahyono Nurcahyono1,*, Fatmasari Sukesti1, Alwiyah Alwiyah1, Dina Ermawati1
  • 1: Universitas Muhammadiyah Semarang, Semarang city, Indonesia
*Contact email: nurcahyo@unimus.ac.id

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.