PENGARUH KINERJA KEUANGAN DAN UKURAN PERUSAHAAN TERHADAP FINANCIAL DISTRESS

Abstract

The purpose of this research is to analyze the influence of insurance financial ratio i.e. Solvencymargin ratio (MSR), claims expensesratio (ICR), premium growth rate (PGR), liquidity ratio (LIQ) and other financial ratios i.e. return on assets (ROA) and firm size (SIZ) to the prediction of the occurrence of financial distress of the life insurance companies which are listed in Direktori Perasuransian Indonesia in 2014 periods. The data is the secondary data which has been retrieved from the financial statement from the Book of Direktori Perasuransian Indonesia and AAJI (Indonesian Life Insurance Association) in 2010-2014. The research sample has been done by using purposive sampling and 22 insurance companies have been selected as samples. The research model has been done by using logistic regressions test. The result of the test shows that solvency margin ratio (MSR), the liquidity ratio (LIQ), return on assets (ROA), firm size (SIZE) have significant and negative influence to the financial distress condition of insurance company. Meanwhile, the claim expenses ratio (ICR), the premium growth rate (PGR) does not have any influence to the financial distress condition of insurance company. Keywords: Fianncial Distress, Financial Ratio, Logistic Regressions.