The Influence Of Audit Commite Characteristics and Ownership Structure On Financial Distress With Leverage As A Control Variable
DOI:
https://doi.org/10.54099/ass.v1i1.393Keywords:
Audit committee characteristics; , Financial distress; Ownership structure, LeverageAbstract
Financial distress signals a dire state for a company's finances, often heralding potential bankruptcy. In this study, financial distress is gauged through the interest coverage ratio. The research aims to explore how Ownership Structure measured by managerial and institutional ownership and audit committee characteristics such as committee size, meeting frequency, and independence affect manufacturing companies listed on the Indonesia Stock Exchange. SPSS logistic regression model is employed for analysis. With a sample of 37 qualifying companies, findings reveal that neither the size of the audit committee, meeting frequency, nor independence, alongside institutional ownership, managerial ownership, and leverage, significantly impact the likelihood of financial distress. Moreover, dominant test results indicate that these points do not exert a dominant influence on financial distress probability.
References
Beaver, Correia dan mcnichols. 2010. Financial Statement Analysis and the Prediction of Financial Distress. http://dx.doi.org/10.1561/1400000018
Brédart. (2014). Financial Distress and Corporate Governance: The Impact of Board Configuration. International Business Research, 72-80.
Chung, R., Firth, M., & Kim, J. 2002. Institusional Monitoring and Opportunistic Earnings Management. Journal of Corporate Finance, 8 (1), pp. 29-4.
David, K. J., John, T., & Moses, A. (2023). Auditing Process and Service Delivery In Kabale Local Government, Uganda. International Journal of Entrepreneurship and Business Management, 2(2), Article 2. https://doi.org/10.54099/ijebm.v2i2.783
Elloumi, F., & Gueyié, J. P. 2011. Financial distress and corporate governance: An empirical analysis. Corporate Governance: The International Journal of Business in Society, 1(1), 15–23. https://doi.org/10.1108/14720700110389548
Forum for Corporate in Indonesia. (2001). In Seri Tata Kelola (Corporate Governance) Jilid II. Retrieved from http:/fcgi.org.id
Ghozali, I. (2018). Aplikasi Analisis Multivariate Dengan Program IBM SPSS 25, Edisi Kesembilan. Semarang: Penerbit Undip.
Hassan Al-Tamimi, H. A. 2012. The effects of corporate governance on performance and financial distress: The experience of UAE national banks. Journal of Financial Regulation and Compliance, 20(2), 169–181. https://doi.org/10.1108/13581981211218315
Iskamto, D. (2022). Does Career Development Effect on Professionalism? : A Case Study of State Civil Apparatus in Indonesia. International Journal of Management and Business Applied, 1(1), Article 1. https://doi.org/10.54099/ijmba.v1i1.94
Iskamto, D., Karim, K., Sukono, & Bon, T. (2020). Impact of Employee Satisfaction on Work Discipline in Government Office in Indonesia. The International Conference on Industrial Engineering and Operations Management, 13.
Jaenudin, J., & Fauziana, E. (2022). The Analysis of Good Organization Governance to the Leadership and Regeneration Effectiveness in Muhammadiyah Islamic Mass Organization. Adpebi International Journal of Multidisciplinary Sciences, 1(1), Article 1. https://doi.org/10.54099/aijms.v1i1.313
Kartika, A. (2013). Analisis Pengaruh Corporate Governance terhadap Kemungkinan Terjadinya Financial Distress pada Perusahaan Indonesia. FE Universitas Indonesia.
Li, Hong-xia, Zong-Jun. Wang dan X. Deng. 2008. Ownership, Independent Directors, Agency Cost, and Financial Distress : Evidence from Chinense Listed Companies. Emerald Group Publishing Limited, Vol. 8, No. 5, h. 622-636
Mafiroh, A. (2016). Pengaruh Kinerja Keuangan dan Mekanisme Good Corporate Governance Terhadap Financial Distress. Naskah Publikasi.
Manzaneque, M., Priego, A. M., & Merino, E. 2015. Corporate Governance Effect on Financial Distress Likelihood: Evidance from Spain. Revistade Contabilidad – Spanish Accounting Review, Vol. 19, pp. 111-121.
Mselmi, d. (2017). Modeling Corporate Financial Distress Using Financial and Non-Financial Variables. International Journal of Law and Management, 459.
Novita, W., Nopiana, P. R., & Putri, Y. A. (2022). Analysis of External Factors Affecting Audit Quality in Indonesia. International Journal of Islamic Business and Management Review, 2(1), Article 1. https://doi.org/10.54099/ijibmr.v2i1.143
Platt, H. D., & Platt, M. B. (2002). Predicting Corporate Financial Distress: Reflection on Choice-Based Sample Bias. Journal of Economics and Finance, 184-199.
Puteri, H. E. (2023). Good Corporate Governance, Leverage and Corporate Financial Performance in the Jakarta Islamic Index. International Journal of Indonesian Business Review, 2(2), Article 2. https://doi.org/10.54099/ijibr.v2i2.685
Rama Nopiana, P. & Rusmiati Salvi. (2022). Analysis of Governance, Leverage and Financial Distress Conditions on Earnings Management in the Banking Services Sector in Indonesia. Asean International Journal of Business, 1(1), 34–42. https://doi.org/10.54099/aijb.v1i1.69
Shafira, K., Zsalzsalbila, H., & Ashari, H. (2023). Sectors That Accepted The Most Going Concern Audit Opinion During The Covid-19 Pandemic. Husnayain Business Review, 3(2), Article 2. https://doi.org/10.54099/hbr.v3i2.560
Soesetio, Y. (2023). Good Corporate Governance Mechanisms and Financial Performance in Controlling Financial Distress. ADPEBI International Journal of Business and Social Science, 3(1), Article 1. https://doi.org/10.54099/aijbs.v3i1.542
Srimulatsih, M. (2021). The Impact of Career Development on Employee’s Commitment At Oil Palm Plantation Company In Indonesia. ADPEBI International Journal of Business and Social Science, 1(1), Article 1. https://doi.org/10.54099/aijbs.v1i1.40
Sukmana, Y. (2019, Oktober). Sri Mulyani Minta Perusahaan-Perusahaan Indonesia Waspada, Ada Apa? Retrieved from Harian Kompas: https://money.kompas.com/read/2019/10/01/183900826/sri-mulyani-minta-perusahaan-perusahaan-indonesia-waspada-ada-apa-
Yoon, E., & Jang, S. C. (2005). The Effect of Financial Leverage on Profitability and Risk of Restaurant Firms. Journal Akuntansi
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Adpebi Science Series
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
