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

Research Article

Bond Ratings: Impact of Financial Performance and Maturity

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  • @INPROCEEDINGS{10.4108/eai.2-8-2023.2341869,
        author={Elok  Vilantika and Anita  Handayani and Ariska Isnaini Putri},
        title={Bond Ratings: Impact of Financial Performance and Maturity},
        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={bond ratings maturity liquidity leverage profitability},
        doi={10.4108/eai.2-8-2023.2341869}
    }
    
  • Elok Vilantika
    Anita Handayani
    Ariska Isnaini Putri
    Year: 2024
    Bond Ratings: Impact of Financial Performance and Maturity
    ICEB
    EAI
    DOI: 10.4108/eai.2-8-2023.2341869
Elok Vilantika1,*, Anita Handayani1, Ariska Isnaini Putri1
  • 1: Universitas Muhammadiyah Gresik
*Contact email: elokvilant@umg.ac.id

Abstract

Bond ratings provide a signal to issuers and investors about the probability of default on debt payments, especially the long-term debt of a company. This study aims to examine the effect of financial performance and maturity on bond ratings, especially banks listed on the Indonesia Stock Exchange. This study uses the entire banking sector listed on the Indonesia Stock Exchange for the 2013-2022 period and rated by PT PEFINDO. The sampling method is purposive sampling method. This sample consists of 14 banks, hypothesis testing using multiple linear regression analysis with SPSS data processing tool. The results showed that profitability and liquidity had a significant positive effect on bond ratings, while the solvency and maturity variables had a significant negative effect on bond ratings.