PREDIKSI FINANCIAL DISTRESS PEMERINTAH DAERAH DI INDONESIA

Novica Indriaty

Abstract


This research aimed to analyze the influence of debt ratio, financial performance, profitability, population and audit opinion on financial distress of the local govermnet probability in Indonesia. Reffering to PP No.30 Tahun 2011 about regional loans, local goverment stated as having financial distress if the government are unable to repay loans both in principal or interest, by using Dect Service Coverage Ratio (DSCR) indicator, at least 2,5 (two point five). The population of this researh is all local financial statement (LPKD) from state audit bureu of Indonesia (BPK RI) and annual statement of statistic central committe (BPS) from regency goverment in 2008-2014. 641 sample chosen by using purposive sampling method. Panel data regression which supported by computer software for Eviews 99 version) used as data analysis. Panel data regression consists of 3 methods that are Common Effect, Fixed Effect and Random Effect where chosen by Chow Test, Hausman Test and Language Multipler Test. The result of this research show that the chosen model is Random Effect where STL/R, PM and audit opinion significantly affect on financial distress of local goverment probability in Indonesia.


Keywords


innacial distress, finnacial ratio, financial performance ratio, probability ratio, audit opinion, panel data regression

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