Analisis Pengaruh Solvabilitas dan Derajat Desentralisasi Terhadap Financial Distress Provinsi Di Indonesia

ABSTRACT Financial distress is a condition in which the government is deemed incapable of providing optimal infrastructure services to the public. This study aims to determine the effect of solvency and the degree of decentralization on the financial distress of provinces in Indonesia. The panel data for this study were obtained from the audited financial reports of the BPK RI for 34 provinces from 2018 to 2022. The testing was conducted using the Eviews 12 program. The results concluded that solvency has no effect, while the degree of decentralization has a positive effect on financial distress. Keywords: Financial Distress, Solvency Rasio, Degree Of Decentralization. ABSTRAK Financial distress adalah kondisi saat pemerintah dinilai tidak mampu melakukan pelayanan infrstruktur yang optimal kepada masyarakat. Penelitian ini ditujukan mengetahui pengaruh solvabilitas dan derajat desentralisasi terhadap financial distress provinsi di Indonesia. Data panel pada penelitian ini didapatkan dari laporan keuangan BPK RI audited 34 provinsi di Indonesia tahun 2018 – 2022. Pengujian dengan menggunakan bantuan program Eviews 12. Hasil pengujian memperoleh kesimpulan bahwa solvabilitas tidak berpengaruh, sedangkan derajat desentralisasi memiliki pengaruh positif terhadap financial distress. Kata kunci: Financial Distress, Solvabilitas, Derajat Desentralisasi.