PENGARUH MEKANISME TATA KELOLA PERUSAHAAN TERHADAP KEMUNGKINAN TERJADINYA FINANCIAL DISTRESS (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2014-2016)

Abstract

The purpose of this study is to examine the influence of corporate governance mechanism to likelihood of financial distress. The dependent variable of this study is financial distress which is proxied as dummy variable of (a)its earnings before interest and taxes, depreciation and amortization (EBITDA) are lower than its financial expenses for two consecutive years;and/or, (b) a fall in its market value occurs between two consecutive periods and the independent of this study are ownership concentration, institutional ownership, board ownership, proportion of independent directors, and board size. Control variables in this study are corporate size, leverage and return on assets. The population of this study are manufacture companies that listed in Indonesia Stock Exchange (BEI) in 2014-2016. Total samples are 136 companies. This study used purposive sampling as the sampling method and logistic regression as the data analysis. In logistic regression the classical assumption test that needed in this analysis is multicollinearity test. The results of this study indicates that the ownership concentration, have significant positif influence to likelihood of financial distress and proportion of independent directors have significant negatif influence to likelihood of financial distress. While the institutional ownership, board ownership, and board size have no significant influence to likelihood of financial distress.