Analisis Prediksi Financial Distress Pemerintah Daerah Kabupaten/Kota Di Indonesia Periode 2010-2013

Financial distress is a condition in which an area experiencing financial difficulties. This study aims to examine the effect of financial independence, decentralization, and the solvency of the prediction of financial distress in the local government district or city in Indonesia listed in the Board of Audit of the Republic of Indonesia and the Director General of the Financial Balance of Local Government in 2010-2013. The sampling method with a purposive sampling according to criteria that have been determined. The number of samples collected as many as 40 districts or cities. The collected data were analyzed using logistic regression analysis. The results showed that the variables of financial independence and thesolvency affect the financial distress prediction while decentralization variable does not affect the prediction of financial distress