Early Detection Of Financial Crisis: Analysis Of Insurance Companies On The Indonesian Stock Exchange

Abstract

This research aims to analyze the influence of Liquidity, Cash Flow, Institutional Ownership, Profits, and Independent Commissioners on Financial Distress in Insurance Companies. The unit of analysis is 15 insurance companies listed on the Indonesia Stock Exchange for the 2018-2021 period. The independent variables used in this research are Liquidity which is measured using the current ratio (CR), Cash Flow which is measured through operating activities, Institutional Ownership which is measured through the percentage of shares owned by institutional parties, Profit which is measured using profit before tax (EBT), and Independent Commissioners which are measured using the percentage of the number of independent commissioners. Meanwhile, the dependent variable is Financial distress which is measured using ICR (Interest Coverage Ratio). The sample collection method used by researchers is purposive sampling. The analytical method used is multiple linear regression analysis. The results of this research show that Liquidity, Cash Flow, Institutional Ownership, Profits, and Independent Commissioners have a significant influence on Financial Distress conditions.