FAKTOR-FAKTOR YANG MEMPENGARUHI KEBERHASILAN PROSES TURNAROUND PADA PERUSAHAAN PERBANKAN

Abstract

A change of economic condition often affect companies’ financial performance, including banking companies. In other words, unprepared management will have a decline in their financial performance. Moreover, it will have the worst experience, i.e. being bankrupt. As a consequence, companies have done turnaround in order to prevent bankruptcy. Thus, it is important to find out some factors which affect the success of turnaround and get through from financial distress of banking companies, as there is a significant effect of banking companies on Indonesia’s economic condition. This research focused on banking companies which were listed on Indonesia Stock Exchange (IDX) during 2015-2019. Furthermore, the data analysis technique used logistics regression. The research result concluded that free assets had a positive effect on the success of turnaround. On the other hand, debts restructuring had a negative effect on the success of turnaround. The restructuring of either banking or non-banking companies had a contrasting effect since OJK’s policy of it had more advantages on their creditor. Meanwhile, both asset retrenchment and CEO’s turnover had insignificant effect on the success of turnaround.
Keywords: asset retrenchment, CEO’s turnover, free asset, debt restructuring, turnaround