TY - JOUR
T1 - Cash flow analysis, corporate governance and financial distress
AU - Hamdiyah, Chasanatul
AU - Rizki, Amalia
N1 - Publisher Copyright:
© 2020 Primrose Hall Publishing Group.
PY - 2020
Y1 - 2020
N2 - Using a sample of mining companies listed on the Indonesia Stock Exchange (BEI) over the period of 2014-16, this study aims to investigate the relationship of cash flow analysis and good corporate governance with financial distress. The cash flow analysis ratio includes CFFO / TL; CFFI / TL; CFFF / TL; CFFO / TR; and CFFO / CL. Good corporate governance is the composition of the board of commissioners, the ownership of institutional shares to the total shares, the ownership of shares of internal parties to the total shares and the composition of the audit committee. The target of observation in this research is all mining sector companies based on set criteria. The logistic regression method, G-test and t-test are used to analyse the relationship between the variables. Our results show that one ratio of cash flow analysis shows the relationship between cash flow analysis and financial distress. This study did not find any relationship between good corporate governance and financial distress. The results of this study contribute to investors and users of financial statements to consider the company's financial performance, especially regarding the solvency of the company, because it is able to provide information on whether the company's long-term financial condition is healthy.
AB - Using a sample of mining companies listed on the Indonesia Stock Exchange (BEI) over the period of 2014-16, this study aims to investigate the relationship of cash flow analysis and good corporate governance with financial distress. The cash flow analysis ratio includes CFFO / TL; CFFI / TL; CFFF / TL; CFFO / TR; and CFFO / CL. Good corporate governance is the composition of the board of commissioners, the ownership of institutional shares to the total shares, the ownership of shares of internal parties to the total shares and the composition of the audit committee. The target of observation in this research is all mining sector companies based on set criteria. The logistic regression method, G-test and t-test are used to analyse the relationship between the variables. Our results show that one ratio of cash flow analysis shows the relationship between cash flow analysis and financial distress. This study did not find any relationship between good corporate governance and financial distress. The results of this study contribute to investors and users of financial statements to consider the company's financial performance, especially regarding the solvency of the company, because it is able to provide information on whether the company's long-term financial condition is healthy.
KW - Cash flow analysis
KW - Financial distress
KW - Good corporate governance
UR - http://www.scopus.com/inward/record.url?scp=85087087581&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:85087087581
SN - 2201-1315
VL - 13
SP - 745
EP - 761
JO - International Journal of Innovation, Creativity and Change
JF - International Journal of Innovation, Creativity and Change
IS - 4
ER -