FINANCIAL DISTRESS DITINJAU DARI RASIO KEUANGAN DAN KARAKTERISTIK PEMERINTAH DAERAH

Abstract

The purpose of this study is to measure financial distress in terms of financial ratios and local government characteristics in 38 regencies/cities in East Java Province in 2018-2023. Financial ratios are represented by the variables Effectiveness Ratio, Efficiency Ratio, and Growth Ratio. Local government characteristics are represented by Regional Government Financial Independence and Population. Secondary data is sourced from the DJPK website of the Ministry of Finance and BPS. The sampling procedure uses the total sampling method. The analytical method uses panel data regression with the help of Eviews 12 software. Based on research findings, financial distress is significantly influenced by population, effectiveness ratios and efficiency ratios. Meanwhile, the ratio of growth and financial independence of local governments has no effect on financial distress.