Bambang, Sudiyatno and Sri, Sudarsi and Tristiana, Rijanti and Askar, Yunianto Corporate Governance and Financial Distress in the Indonesia Banking Sector: An Empirical Study. Montenegrin Journal of Economics.
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Abstract
Studying the relationship between corporate governance, interest rate risk and financial distress is the aim of this study. To examine this relationship, interest rate risk is used as a moderating variable. The variables used in this study are the board of directors and institutional ownership as proxies for corporate governance, and net interest margin is used as a proxy for interest rate risk. The research was conducted on the conventional bank-ing sector listed on the Indonesia Stock Exchange in the period 2015-2019. Sampling of data using purposive sampling method. Data analysis to determine the relationship and hypothesis testing using logistic regres-sion. The results showed that institutional ownership had a negative effect on financial distress at a significance level of less than 5%, while interest rate risk had a negative effect on a significance level of less than 10%, and the board of directors had a negative but insignificant effect. Interest rate risk acts as a moderating variable in determining the relationship between institutional ownership and financial distress. Institutional owner-ship has an impact on increasing financial distress in banks with high interest rate risk.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > H Social Sciences (General) |
| Faculty / Institution: | Fakultas Ekonomika dan Bisnis |
| Depositing User: | Fakultas Ekonomi |
| Date Deposited: | 12 Jun 2023 03:17 |
| Last Modified: | 12 Jun 2023 03:17 |
| URI: | https://eprints.unisbank.ac.id/id/eprint/9609 |
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