PENGARUH GOOD CORPORATE GOVERNANCE DAN PROFITABILITAS TERHADAP FINANCIAL DISTRESS

Abstract

This research aimed to examine the effect of managerial ownership, institutional ownership, and profitability on the financial distress at Food and Beverage companies which were listed on the Indonesia Stock Exchange (IDX). The research was quantitative. Moreover, the research population was Food and Beverage companies which were listed on the Indonesia Stock Exchange (IDX) during 2017-2021. In line with that, there were 9 companies as the sample. Furthermore, the data were secondary, taken from companies’ financial statements from 2017 until 2021. Additionally, the data analysis technique used descriptive statistics analysis, multiple linear regression, and classical assumption consisting of normality test, multicolinearity test, autocorelation test, heteroscedasticity test, data normality test, and determination test. Based on the research result, it showed that the managerial ownership affected financial distress at Food and Beverage companies. Likewise, institutional ownership affected financial distress at Food and Beverage companies. Similarly, profitability affected financial distress at Food and Beverage companies.