PENGARUH SISTEM COORPORATE GOVERNANCE, LEVERAGE DAN OPERATING CAPACITY TERHADAP POTENSI FINANCIAL DISTRESS

Abstract

As the development of economy in Indonesia moves rapidly, many competition occurs among companies. Consequently, there was so much pressure from many elements in order to develop some inovations. While, to avoid bankcruptcy and bank interest rate, every companies have to fulfill their obligation in paying the debts on time. Therefore, the research aimed to find out some predictions of financial distress on every companies and to avoid companies from having difficulties in financial problem.The research was quantative. Moreover, the data collection technique used purposive sampling. In line with, there were 60 samples from 15 metal manufacturing companies, which listed on Indonesia Stock Exchange 2015-2018. Furthemore, there were two variables, namely independent and dependent variables. For the data analysis technique, it used logistics regression with SPSS 23.
The research result concluded institutional and managerial ownership board of directors, commissioner board, and leverage has affected on financial distress. On the other hand, operating capacity did not affect the financial distress.
Keywords: financial distress, operating capacity, leverage, bankruptcy economy.