PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP FINANCIAL DISTRESS

Abstract

This study aims to obtain empirical evidence of the effect of good corporate governance on financial distress.
Good corporate governance is measured by the size of the board of commissioners, the size of the board of directors,
managerial ownership measured using the number of shares in management compared to the total shares of the
company, institutional ownership measured using the number of shares in institutions compared to the total shares of
the company and financial distress is measured using the Altman z-score method. The research method used in this
study is a quantitative method. The sample in this study used a purposive sampling method. Based on the established
criteria, a research sample of 150 samples was obtained from 30 manufacturing companies listed on the special
monitoring board (companies that require special attention) listed on IDX in 2018-2022. The results of the study
indicate that good corporate governance variables (size of the board of commissioners, size of the board of directors,
managerial ownership, institutional ownership) have a negative effect on the financial distress of manufacturing
companies listed on the special monitoring board listed on the IDX in 2018-2022. So that the first hypothesis until
fourth hypothesis are accepted.
Keywords: Board of Commissioners, Board of Directors, Managerial Ownership, Institutional Ownership, Financial
Distress.