Effect of Financial Performance against Financial Distress through Risk in Islamic Banks

Abstract

This study aimed to analyze the influence of financial performance (ROA, ROE, FDR and BOPO) against risk; analyze the influence of financial performance (ROA, ROE, FDR and BOPO) and the Risk to Financial Distress, and to analyze the influence of financial performance (ROA, ROE, FDR and BOPO) of the Financial Distress through Risk Probability. Mechanical analysis using Partial Least Square (PLS). The analysis showed that the effect on the financial performance of risk, which means that the poor financial performance can increase the risk. Financial distress is affected by financial performance risk. Risk mediating influence the financial performance of the stock price. Better financial performance reflects the performance of a particular period can reduce financial distress