Research Article
The Effect of Risk Disclosure, Non-Performing Loans and Operational Cash Flows on Financial Distress with Corporate Governance as a Moderating Variable
@INPROCEEDINGS{10.4108/eai.3-8-2021.2315146, author={Vinola Herawaty and Ni Putu Eka Juniari and Barugamuri Dachi}, title={The Effect of Risk Disclosure, Non-Performing Loans and Operational Cash Flows on Financial Distress with Corporate Governance as a Moderating Variable}, proceedings={Proceedings of the First Lekantara Annual Conference on Public Administration, Literature, Social Sciences, Humanities, and Education, LePALISSHE 2021, August 3, 2021, Malang, Indonesia}, publisher={EAI}, proceedings_a={LEPALISSHE}, year={2022}, month={1}, keywords={financial distress; risk disclosure; non-performing loan; operating cash flow; good corporate governance}, doi={10.4108/eai.3-8-2021.2315146} }- Vinola Herawaty
Ni Putu Eka Juniari
Barugamuri Dachi
Year: 2022
The Effect of Risk Disclosure, Non-Performing Loans and Operational Cash Flows on Financial Distress with Corporate Governance as a Moderating Variable
LEPALISSHE
EAI
DOI: 10.4108/eai.3-8-2021.2315146
Abstract
The purpose of this study is to examine the effect of risk disclosure, non-performing loans, and operating cash flows on the financial distress of banking companies with corporate governance as a moderationg variable. The data is obtained from the company's annual financial reports which are downloaded on the website www.idx.co.id. The sampling method uses purposive sampling with the criteria that companies are listed on the IDX from 2017-2019, financial reports are in Rupiah currency, companies publish financial reports and annual reports every year. Companies that meet the criteria are 42 out of 45 banking companies listed on the Indonesia Stock Exchange in 2017-2019, but there are data outliers so that the research sample is 34 companies with the total of 102 research data. The data analysis techniques used are descriptive statistics, classical assumption tests and regression test with panel data regression analysis using EViews. The results showed that risk disclosure, operating cash flow and good corporate governance had negative effects on financial distress while non-performing loans had no effect on financial distress. Good corporate governance was not proven to strengthen the effect of risk disclosure on financial distress, good corporate governance is not proven to weaken the effect of non-performing loans on financial distress, good corporate governance is not proven to strengthen the effect of operating cash flows on financial distress.