Analysis of CAMEL ratio on financial distress banking companies in Indonesia

Fachrul Ferdiansyah; Endang Tri Widyarti

doi:10.14710/dijb.5.1.2022.47-56

DOI: https://doi.org/10.14710/dijb.5.1.2022.47-56

Analysis of CAMEL ratio on financial distress banking companies in Indonesia

Fachrul Ferdiansyah, Endang Tri Widyarti

Universitas Diponegoro, Indonesia

Citation Format:

Abstract

The purpose of this research is to determine the influence of banking financial ratio on Financial Distress. The independent variables used in this research are CAR, NPL, BOPO, ROA and LDR, also the dependent variable that is used in this research is Financial Distress. The population used in this research are the 48 banking companies that is listed in the Indonesia Stock Exchange during the period of 2016-2020, and the samples used are 40 manufacture companies which were taken by using purposive sampling method. The analysis method used in this research is logistic regression and is processed using SPSS Statistics 25 software. The result of the this research states that ROA has a significant effect on Financial Distress, while CAR, NPL, BOPO and LDR has no significant effect towards Financial Distress.

Fulltext View|Download

Keywords: CAMEL, financial ratio, financial distress

Article Metrics:

Article Info

Section: Articles

Language : EN

In Vol 5, No 1 (2022)

Recent articles

Back matter Front matter Analysis of investment strategy in Indonesian consumer goods industry: Benjamin Graham's approach The influence of financial literacy, financial attitudes, and lifestyle on financial behavior The dark side of perceived corruption: Mediating mechanism between love of money and evil behavior More recent articles

Balasubramanian, S. A., Radhakrishna, G. S., Sridevi, P., & Natarajan, T. (2019). Modeling corporate Financial Distress using financial and non-financial variables: The case of Indian listed companies. International Journal of Law and Management, 61(3–4), 457–484. https://doi.org/10.1108/IJLMA-04-2018-0078
Betz, F., Opricǎ, S., Peltonen, T. A., & Sarlin, P. (2014). Predicting distress in European banks
Bhattacharya, et.al. (2015). A Reconsideration of Minsky's Financial Instability Hypothesis
Brealey, R., Leland, H. E., & Pyle, D. H. (2012). The Journal of Finance. Session Topic: Investments-Theoretical Issues Informational Asymmetries, Financial Structure, and Financial Intermediation. Source: The Journal of Finance, 32(2), 371–387
Corporate Governance: The International Journal of Business in Society, 1(1), 15–23. http://dx.doi.org/10.1108/14720700110389548
Dr. Sandu Siyoto, SKM, M.Kes, M. Ali Sodik, M. (2015). Buku Metode Penelitian Kualitatif dan Kuantitatif (Issue April). CV Pustaka Ilmu
Dwiarti, R. (2020). The Effect of Camel Ratio in Predicting Financial Distress Conditions in Banking Companies Registered in Indonesia Stock Exchange (BEI). European Journal of Business and Management, 12(18), 90–96. https://doi.org/10.7176/ejbm/12-18-10
Elloumi dan Gueyie (2001). Financial Distress and corporate governance: an empirical analysis
Eng, T. S. (2013). Pengaruh NIM, BOPO, LDR, NPL & CAR Terhadap ROA Bank Internasional Dan Bank Nasional Go Public Periode 2007 – 2011. Jurnal Dinamika Manajemen, 1(3), 153– 167
Firasari & Saparila. (2018). Penggunaan Rasio Profitabilitas, Likuiditas, Leverage dan Arus Kas Untuk Memprediksi Financial Distress Pada Perusahaan Sektor Aneka Industri di BEI. Jurnal Administrasi Bisnis, 61(2), 137
Ghozali, Imam. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS. Badan Penerbit Universitas Diponegoro Semarang
Imansyah Handry M. (2009). Krisis Keuangan di Indonesia. PT Elex Media Komputindo. Khadapi, M. (2017). Pengaruh CAR, ROA, BOPO dan FDR Terhadap Financial Distress Bank
Indonesia Periode 2009-2013. Journal of Business Management Education (JBME), 1(1), 138–148. https://doi.org/10.17509/jbme.v1i1.2283
Krugman Paul. (1979). A Model of Balance of Payment Crisis. Journal of Money, Credit, and Banking
Kuncoro, S., & Agustina, L. (2017). Factors to Predict the Financial Distress Condition of the Banking Listed in The Indonesia Stock Exchange. Accounting Analysis Journal, 6(1), 39–47. https://doi.org/10.15294/aaj.v6i1.11343
Kurniasari. (2013). Jurnal Ekonomi Universitas Dipoengoro. Analisis Pengaruh Rasio CAMEL Dalam Memprediksi Financial Distress Perbankan Indonesia
Laksito, H., & Nanang, N. (2016). Model Prediksi Tingkat Kesehatan Bank Melalui Rasio Camels
Lemmon, M. L., & ZenDER, J. F. (2010). Debt capacity and tests of capital structure theories
Mahariyani, N., Wardini, A. K., & Wati, L. N. (2020). Bank Financial Distress Prediction Model With Logit Regression. Journal of Research in Business and Management, 8(9), 18–34
Muflihah, I. Z. (2017). Analisis Financial Distress Perusahaan Manufaktur Di Indonesia dengan Regresi Logistik. Majalah Ekonomi, XXII(2), 254–269
Ningsih, S., Hamdani Husnan, L., & Suryani, E. (2021). Pengaruh Makroekonomi Terhadap Harga Saham dengan Financial Distress sebagai Variabel Mediasi: Studi Kasus pada Kondisi
Nufus, K., Audina, N., & Muchtar, A. (2018). Effect of Financial Distress Ratio Banking Company in Indonesia Period 2011-2015. Research Journal of Finance and Accounting, 9(16), 68–75
Pandemi Covid-19. Jurnal Ekonomi Dan Pembangunan, 9(2), 1206–1218
Putri, A. Y. U., Pertiwi, I., Manajemen, J., Ekonomi, F., & Maret, U. S. (2010). Rasio CAMEL Sebagai Indikator Tingkat Kesehatan dan Kebangkrutan Perbankan
RAND Corporation Stable. The Bell Journal of Economics, 8(1), 23–40. http://www.jstor.org/stable/3003485
Rao, S., Lee, K. B., Connelly, B., & Iyengar, D. (2018). Return Time Leniency in Online Retail: A Signaling Theory Perspective on Buying Outcomes. Decision Sciences, 49(2), 275–305. https://doi.org/10.1111/deci.12275
Ross, S. A. (1977). The Determination of Financial Structure: The Incentive-Signalling Approach
Simanjuntak, P., & Sari, R. (2014). Analisis Pengaruh Return on Asset, Net Profit Margin, Earning Per Share Terhadap Return Saham Pada Perusahaan Perbankan Yang Terdaftar Di Bei. Jurnal Ekonomi Dan Keuangan, 2(7), 14807
Sjahril, R., Priharta, A., Parewangi, A. M. A., & Hermiyetti. (2014). Modeling Financial Distress : The Case of Indonesian Banking Industry. International Economic Modeling Conference, July 16-18, 2014, Bali, Indonesia., 1–23
Smulowitz, S., Becerra, M., & Mayo, M. (2019). Racial Diversity and Its Asymmetry Within and Across Hierarchical Levels: The Effects on Financial Performance. Human Relations, 72(10), 1671–1696. https://doi.org/10.1177/0018726718812602
Sofiasani, G., & Gautama, B. P. (2016). Pengaruh CAMEL Terhadap Financial Distress Pada Sektor Perbankan Indonesia Periode 2009-2013. Journal of Business Management Education (JBME), 1(1), 138–148. https://doi.org/10.17509/jbme.v1i1.2283
Theodorus, S., & Artini, L. G. S. (2018). Studi Financial Distress Pada Perusahaan Perbankan Di Bei. E-Jurnal Manajemen Universitas Udayana, 7(5), 2710
Theodorus, S., & Artini, L. G. S. (2018). Studi Financial Distress Pada Perusahaan Perbankan Di Bei. E-Jurnal Manajemen Universitas Udayana, 7(5), 2710
Umum Syariah di Indonesia Periode 2014-2016. Unpublish Thesis - UIN Syarif Hidayatullah

Last update:

No citation recorded.

Last update:

No citation recorded.

Author(s) Rights

In order for Diponegoro International Journal of Business (DIJB) to publish and disseminate research articles, we need publishing rights (transferred from author(s) to publisher). This is determined by a publishing agreement between the author(s) and DIJB. This agreement deals with the transfer or license of the copyright of publishing to DIJB, while authors still retain significant rights to use and share their own published articles. DIJB supports the need for authors to share, disseminate and maximize the impact of their research and these rights, in any databases.

As an author, you have rights to a large range of uses of your article, including use by your employing institute or company. These Author rights can be exercised without the need to obtain specific permission. Authors publishing in DIJB has wide rights to use their works for teaching and scholarly purposes without needing to seek permission, including:

use for classroom teaching by Author or Author's institution and presentation at a meeting or conference and distributing copies to attendees;
use for internal training by the author's company;
distribution to colleagues for their research use;
use in a subsequent compilation of the author's works;
inclusion in a thesis or dissertation;
reuse of portions or extracts from the article in other works (with full acknowledgement of final article);
preparation of derivative works (other than commercial purposes) (with full acknowledgement of final article);
voluntary posting on open web sites operated by author or author’s institution for scholarly purposes,

(but it should follow the open-access license of Creative Common CC-by-SA License).

Authors/readers/third parties can copy and redistribute the material in any medium or format, as well as remix, transform, and build upon the material for any purpose, even commercially, but they must give appropriate credit (the name of the creator and attribution parties (authors detail information), a copyright notice, an open-access license notice, a disclaimer notice, and a link to the material) and provide a link to the license.

Authors/readers/third parties can read, print and download, redistribute or republish the article (e.g. display in a repository), translate the article, download for text and data mining purposes, re-use portions or extracts from the article in other works, sell or re-use for commercial purposes, remix, transform, or build upon the material, they must distribute their contributions under the same license as the original Creative Commons Attribution-ShareAlike (CC BY-SA).

Copyright Transfer Agreement for Publishing (Publishing Right)

The authors submitting a manuscript do so on the understanding that if accepted for publication, the copyright for publishing (publishing right) of the article shall be assigned/transferred to the Department of Management, Faculty of Economics and Business, Universitas Diponegoro as the publisher of DIJB.

Upon acceptance of an article, authors will be asked to complete a 'Copyright Transfer Agreement for Publishing (CTAP)'. An e-mail will be sent to the Corresponding Author confirming receipt of the manuscript together with a CTAP form by the online version of this agreement.

DIJB, the publisher, and the editorial board make every effort to ensure that no wrong or misleading data, opinions or statements be published in the journal. In any way, the contents of the articles and advertisements published in DIJB are sole and exclusive responsibility of their respective authors and advertisers.

Remember, even though we ask for a transfer of copyright for publishing (CTAP), our journal Author(s) retain (or are granted back) significant scholarly rights as mentioned before.

The Copyright Transfer Agreement for Publishing (CTAP) Form can be downloaded here