Earning Management, Risk Profile and Efficient Operation in the Prediction Model of Banking : Eviden from Indonesia

Authors

  • Sugiyanto  FEB Universitas Trisakti, Jakarta, Indonesia
  • Etty Murwaningsari  FEB Universitas Trisakti, Jakarta, Indonesia

Keywords:

Earning Management, Risk Profile, Operational Efficiency, Good corporate Goverment

Abstract

This study aims to test the Earning managemant, Risk Profile, Opertration Efficiency on bankruptcy prediction model of the bank in Indonesia, with Sample of 240 data of banking financial statements go public of 41 banks consisting of 31 non-bankrupt banks and 10 bankrupt banks in 2008-2015 . Research methodology measures Earning management, NPL. ROA, CAR, NIM moderation uses 185 item analysis content inquiries from 5 GCG principles based on Asean corporate governance scorecard index from Asean capital market forum (ACMF 2014), include variable size control, growth, leverage, tested the sensitivity of Linear Dermometer model. Result of research of Earning Management, ROA, CAR, NIM moderation good corporate governance, risk profile can to predict bank insolvency have positive significant effect. While NPL, Size and Leverage have no contribution to bank insolvency prediction. Sensitivity test results compare among others Linear Discriminant Model (MDL) with Logistic Regression Model 70.80% validation. The best discriminant model result is 88.60% obtained from cross-validated grouped cases correctly classified.

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International Journal of Scientific Research in Science and Technology

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Published

2018-04-30

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Volume 4, Issue 5, March-April-2018

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Research Articles

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[1]
Sugiyanto, Etty Murwaningsari, " Earning Management, Risk Profile and Efficient Operation in the Prediction Model of Banking : Eviden from Indonesia, International Journal of Scientific Research in Science and Technology(IJSRST), Online ISSN : 2395-602X, Print ISSN : 2395-6011, Volume 4, Issue 5, pp.135-150, March-April-2018.