PENGARUH LEVERAGE, PROFITABILITAS, DAN LIKUIDITAS TERHADAP FINANCIAL DISTRESS DENGAN CORPORATE GOVERNANCE SEBAGAI VARIABEL MODERASI

Abstract

This research aims to find out the role of corporate governance in moderating the effect of leverage, profitability, and
liquidity on financial distress. The leverage was measured by Debt to Equity Ratio, profitability was measured by

Return on Assets, liquidity was measured by the Current Ratio, financial distress was measured by the Altman z-
score, and the corporate governance was measured by independent commissionaire size, institutional ownership, and

audit committee. The study applies quantitatively. Furthermore, the population consists of the consumer cyclical sector
companies listed on the Indonesia Stock Exchange (IDX). The data sampling technique used purposive sampling, i.e.,
a research sample collection used determined criteria. In line with that, there were 24 samples taken during 2020-2023.
Moreover, the data analysis technique used moderated regression. The result indicates that independent
commissionaire, institutional ownership, and audit committees are not able to moderate the effect of leverage on
financial distress. However, the independent commissionaire, institutional ownership, and audit committee moderate
negatively the effect of profitability on financial distress. In contrast, the independent commissionaire, institutional
ownership, and audit committee moderate positively the effect of liquidity on financial distress.