Pengaruh tata kelola dan kinerja perusahaan terhadap financial distress pada perusahaan consumer goods industry

Abstract

This study aims to determine the effect of corporate governance and performance on financial distress. This quantitative study collected data from 10 companies listed in the Indonesia Stock Exchange (IDX) from 2015 to 2019. Using multiple linear regression to analyse the data, the result of this study shows that managerial ownership, profitability, and liquidity have a negative effect on financial distress, but the institutional ownership, independent commissioner, director’s size, and leverage have no effect on financial distress. This study has several limitations, including the inaccessibility of financial statements for a number of companies, incomplete availability of the variables for some companies, and the inability to generalize the results of this to other industrial companies. This study is expected to contribute to the development of theory and knowledge on the impact of corporate governance and company performance on the estimation of the financial distress of companies, especially those in the consumer goods industry.AbstrakPenelitian ini bertujuan untuk mengetahui pengaruh tata kelola dan kinerja perusahaan terhadap financial distress. Penelitian ini menggunakan pendekatan kuantitatif dengan 10 sampel perusahaan yang terdaftar di Bursa Efek Indonesia (BEI) periode 2015-2019. Dengan menggunakan analisis regresi berganda, variabel kepemilikan manajerial, profitabilitas, dan likuiditas berpengaruh negatif terhadap terjadinya financial distress, sedangkan kepemilikan institusional, proporsi dewan komisaris independen, jumlah dewan direksi, dan leverage tidak berpengaruh terhadap financial distress. Penelitian ini memiliki beberapa keterbatasan antara lain tidak tersedianya laporan keuangan untuk beberapa perusahaan, tidak lengkapnya variabel pada beberapa perusahaan, dan hasil penelitian tidak yang dapat disamaratakan untuk perusahaan industri lainnya. Penelitian ini diharapkan dapat memberikan kontribusi sebagai sarana pengembangan teori dan ilmu pengetahuan tentang pengaruh tata kelola perusahaan dan kinerja perusahaan untuk memperkirakan financial distress terutama bagi perusahaan yang bergerak pada bidang industri barang konsumsi.

Ratio Analysis to Financial Distress with Profitability as a Moderation Variable

“…The results of this study indicate that liquidity affects financial distress negatively. The results of this study strengthen the research of Annisa et al, (2022) and Kurniasih et al, (2020) which says that liquidity has a negative effect on financial distress.…”

“…If the liquidity increases, so the entity's ability to pay off debt also increases, so it is a positive signal that the entity is in good health. The results of research by Annisa et al, (2022), liquidity affects financial distress negatively. If the entity's liquidity increases, it means that the possibility of experiencing financial difficulties also decreases.…”

“…According to Annisa et al, (2022) suggest that liquidity describes a ratio to measure the ability of an entity to successfully repay short-term debts that are maturing. Cash is the most liquid current asset for the success of paying debts quickly.…”

“…Financial difficulties are caused by failure to pay off maturing debts because the entity is in financial trouble. Several factors cause financial distress, they are the company's failure to minimize operational costs which are getting bigger; liquidity is getting lower; and the uncertainty of receiving corporate income due to dependence on economic conditions (Annisa et al, 2022).…”

How does sharia compliance affect the fraud of the Islamic bank?

“…This agency relationship is a legal arrangement in which one or more parties employ another person to provide services on their behalf and empower those persons to make decisions (Jensen & Meckling, 1976). Decision-making will impact the company's health condition, which is reflected in the financial statements, where external parties see the company's health through financial reports (Annisa, Rochmah, & Ekasari, 2022). Based on this theory, apart from causing agency problems, the separation between principals and agents will also result in information asymmetry or situations where agents have access to knowledge that principals do not.…”