Effect of Financial Performance and Good Corporate Governance of Bond Ratings (A Case Study Companies Listed In Indonesia Stock Exchange Period 2013-2017)

Dina Esensia, Ahmad Fauzan Fathoni, Haryetti Haryetti

Abstract


One type of investments that are considered safe and profitable is a bond. However, this investment has a risk of the company in the form of debt default risk will also affect investor decisions. Therefore, investors need to know the potential risks to be faced with analyzing the viability of the company that became a place for investment by bond rating. In addition, investors need to see whether companies apply corporate governance (GCG) or not because by implementing good corporate governance (GCG) in the company reflects that the company is able to manage efficiently the company's financial performance, including managing the assets and returns. This study aims to examine how the influence of the financial performance and good corporate governance on bond ratings. The population in this study is a company that was listed on the Indonesia Stock Exchange in 2013-2017 as many as 555 companies with a total sample of 57 companies,Sampling technique used is purposive sampling method methods of analysis used in this study is the logistic regression analysis and the results showed that financial performance variables significant negative effect on obigasi ranked. While good corporate governance variables were significant positive effect on bond ratings.

Keywords


Bond Rating, GCG, Return On Assets

Full Text:

PDF

References


Adams, M., Burton, B., & Hardwick, P. (2000). The Determinants of Credit Ratings in the United Kingdom Insurance Industry. Journal of Accounting and Economics, 19.

Almilia, L. S., & Devi, V. (2007). Factors that Pempengaruhi Prediction Bond Ratings in Manufacturing Companies Listed on the Jakarta Stock Exchange.

Amrullah, K. (2007). The ability Financial Ratio as a Tool for Predicting Bond Ratings Manufacturing Company. [Thesis]. Semarang: Unnes.

Daniri, M. A. (2005). Good Corporate Governance: Concepts and Practice in the Context of Indonesia. Jakarta: Indonesian Ray.

Dewi, K. K., & Yasa, W. G. (2016). Effect of Good Corporate Governance, Profitability, Liquidity and Solvency against bond rating The Indonesian stock exchange. Journal of Economics, Business and Entrepreneurship, 6(1), 59- 70.

FCGI (Forum For Corporate Governance In Indonesia). nd role of the Board of Commissioners and the Audit Committee in Implementing Corporate Govenance (GCG). Series of Corporate Governance (Corporate Governance) Volume II.

Ghozali, I. (2016). Applications Multivariate Analysis with SPSS. Semarang: Diponegoro Publisher Agency.

Ginting, S. (2012). Influence Analysis of Cash Flow Growth And Profitability Return Of Shares In The Company Lq 45 in Indonesian Stock Exchange. Journal of Economic Wira Mikroskil, 2(1).

Hartono, J. (2008). Portfolio Theory and Investment Analysis (5thEdition). Yogyakarta: BPFE

Husnan, S. (2007). Financial Management Theory and Application (Long-Term Decision). Yogyakarta: BPFE.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3, 305-560.

Magreta., & Nurmayanti, P. (2009). Factors Affecting Prediction Seen From Bond Ratings in Accounting Factors and Non-Accounting. Business and Accounting Journal, 11(3), 143-154.

Mariana. (2016). Effect of Good Corporate Governance Mechanism against Ranked bond listed on the Indonesia Stock Exchange Period 2008-2010.

Newell, R., & Wilson, G. (2002). A premium for good governance. The McKinsey Quartely, 3, 20-23.

Rahardja., & Sari, M. P. (2008). Comparative Analysis Tool (Discriminant and Logistic Regression) on Bond Ratings.

Santoso, S. (2017). Multivariate Statistics with SPSS. Jakarta: PT. Elex Media Komputindo.

Satoto, S. H. (2011). Analysis of Factors Affecting Bond Rating. Karisma, 5(2), 104-115.

Weston, J. F., & Brigham, E. (1994). Fundamentals of Financial Management. Bandung: Erland

www.idx.com Retrieved on September 17, 2018.

www.pefindo.com Retrieved on September 15, 2018.




DOI: http://dx.doi.org/10.47312/ambr.v5i2.249

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.