Jurnal Administrasi Bisnis
Vol 10, No 1 (2021)

How Corporate Governance protects Indonesian Companies From Financial Distress

Novin Lesmana (Faculty of Administrative Science, Universitas Brawijaya)
Cacik Rut Damayanti (Department of Business Administration, Universitas Brawijaya)



Article Info

Publish Date
31 Mar 2021

Abstract

This research aimed to determine the influence of corporate governance which is proxied by the Independent Board of Commissioners, Board of Directors, Institutional ownership, and Financial Performance which is proxied by Return on Assets (ROA), Current Ratio (CR), Debt Ratio (DR) on Financial Distress as measured by Z-score. The importance of implementing corporate governance and corporate financial performance will help predict financial distress in company. This research is conducted in property, real estate and buiding construction sector listed in Indonesia Stock Exchange during the periods 2016-2018. The type of this reasearch is explanatory research, using a quantitative approach. This research was conducted on 17 samples of property, real estate and buiding construction companies listed in Indonesia Stock Exchange during the periods 2016-2018. Samples were obtained through purposive sampling method. The analysis technique is used multiple linier regression. The results show that Return on Assets, Current Ratio, Debt Ratio variables have a significant influence on financial distress. Variables Independent Board of Commissioners, Board of Directors, Institutional Ownership did not partially have a significant influence on financial distress.

Copyrights © 2021






Journal Info

Abbrev

janis

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Jurnal Administrasi Bisnis (JAB), accredited SINTA 3 by Kemenristek Dikti, is published by Diponegoro University, Semarang. This publication contains various scientific writings in the form of research result, theoretical and conceptual studies, practical applications from academics and business ...