PENGARUH TATA KELOLA PERUSAHAAN, PERTUMBUHAN PERUSAHAAN, DAN RASIO AKTIVITAS TERHADAP KONDISI KESULITAN KEUANGAN

Abstract

This research aimed to empirically examine whether financial distress could be affected by Good
Corporate Governance, which consisted of institutional ownership, managerial ownership,
independent commissioner board, audit committee, companies' growth, and activities ratio. Moreover,
it was used to improve knowledge and insight about Good Corporate Governance, companies’ growth,
and activities ratio in affecting companies' financial distress. The research was quantitative. The data
collection technique used purposive sampling with Food and Beverage companies listed on the
Indonesia Stock Exchange (IDX) during 2018-2021 as the population. In line with that, there were 32
companies as the sample with 128 data of observation. Furthermore, the data were taken from the
website, i.e. idx.co.id. The data analysis technique used multiple linear regression. The result
concluded that institutional ownership had a negative effect on financial distress. Likewise, managerial
ownership had a negative effect on financial distress. However, the independent commissioner board
had a positive effect on financial distress. Similarly, the audit committee had a positive effect on
financial distress. In contrast, companies' growth had a negative effect on financial distress.
Meanwhile, the activities ratio had a positive effect on financial distress.