Pengaruh Corporate Governance, Operating Capacity, Leverage, Likuiditas, dan Ukuran Perusahaan terhadap Financial Distress Perusahaan Sektor Miscellaneous Industry

Abstrak

Financial distress is a situation that occurs when a company have an unhealthy financial conditions, if this conditions occurs sustainable, it will have impact bankruptcy on the company. This research aims to determine the effect of corporate governance, operating capacity, leverage, liquidity, and firm size. The independent variables in corporate governance include institutional ownership, managerial ownership and independent board of commissioners. This research’s population are companies in the miscellaneous industry sectors listed on the Indonesia Stock Exchange from 2017 to 2020. The technique from sample retrieval is used purposive sampling and in this research obtained 15 companies as samples. The data analyzed using the logistic regression and calculated with IBM SPSS 25. The result showed that independent board of commissioners had a significant and negative impact on financial distress. Leverage (debt to assets ratio) and firm size had a significant and positive effect on financial distress. While institutional ownership, managerial ownership, operating capacity (total assets turn over), and liquidity (current ratio) don’t have a significant impact on financial distress. Therefore, companies in the miscellaneous industry sectors can give more attention to the role of institutional and managerial ownership as step to avoid financial distress.