Article Sidebar

Download
PDF
Statistic
Read Counter : 414 Download : 468

Main Article Content

Abstract

Financial distress is a situation that arises when a company has an unstable financial situation. If this condition continues, it will impact the company’s bankruptcy. This research aims to determine the influence of Good Corporate Governance, Firm Size, and Operating Capacity on Financial Distress in the retail trade sub-sector listed on the Indonesia Stock Exchange in 2017-2022. The independent variables of Good Corporate Governance include the audit committee, board of commissioners, board of directors, managerial ownership, and institutional ownership. The research method uses a quantitative and associative approach. The population in this study was 27 companies with a sampling technique using purposive sampling, and 25 companies were obtained as samples, so 150 observation data were obtained. The data analysis technique in this research uses logistic regression analysis using IBM SPSS 25 software. The partial research results show that the audit committee, managerial ownership, institutional ownership, and firm size do not affect financial distress. The board of commissioners, board of directors, and operating capacity negatively affect financial distress. Simultaneously, Good Corporate Governance, Firm Size, and Operating Capacity influence financial distress. This research implies that companies must pay attention to the good corporate governance sub-variables related to the board of commissioners and board of directors because these sub-variables have been proven to influence financial distress. Apart from that, companies must also pay attention to their operating capacity because, in this research, this variable was proven to influence financial distress.

Keywords

Financial Distress Good Corporate Governance Firm Size Operating Capacity

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Nurhadimah, S., & Paramita, V. S. P. (2024). The Influence of Good Corporate Governance, Firm Size, and Operating Capacity on Financial Distress (Study of Retail Trade Sub-Sector Companies Listed on The Indonesian Stock Exchange in 2017-2022). Ilomata International Journal of Tax and Accounting, 5(1), 180-201. https://doi.org/10.52728/ijtc.v5i1.1036

References

  1. Adinda, A. R., & Musdholifah, M. (2020). Pengaruh Rasio Keuangan, Corporate Governance Dan Makroekonomi Terhadap Financial Distress. Jurnal Ilmu Manajemen, 8(2), 532–548.
  2. Arrum, T. A., & Wahyono, W. (2021). Pengaruh Operating Capacity, Profitabilitas, Mekanisme Good Corporate Governance dan Firm Size Terhadap Kondisi Financial Distress. Prosiding Seminar Nasional & Call for Paper STIE AAS, 4(1), 744–764.
  3. Avramov, D., Chordia, T., Jostova, G., & Philipov, A. (2013). Anomalies and Financial Distress. Journal of Financial Economics, 108(1), 139–159.
  4. Bravo, U. F., & Moreno, U. E. (2021). Does compliance with corporate governance codes help to mitigate financial distress? Research in International Business and Finance, 55, 101334.
  5. Budiari, N. L., & Devi, S. (2023). Pengaruh Corporate Governance, Ukuran Perusahaan, dan Financial Distress: Studi Pada Perusahaan Properti dan Real Estate Yang Terdaftar Di Bursa Efek Indonesia Tahun 2018-2021. Vokasi: Jurnal Riset Akuntansi, 12(01), 70–81.
  6. Chen, C. C., Chen, C. D., & Lien, D. (2020). Financial distress prediction model: The effects of corporate governance indicators. Journal of Forecasting, 39(8), 1238–1252.
  7. Christine, D., Wijaya, J., Chandra, K., Pratiwi, M., Lubis, M., & Nasution, I. (2019). Pengaruh profitabilitas. leverage,total arus kas dan ukuran perusahaan terhadap financial distress pada perusahaan property dan real estate yang terdapat di bursa efek indonesia tahun 2014-2017. Jurnal Ekonomi Dan Ekonomi Syariah, 2(2), 340–350.
  8. Deviacita, A., & Achmad, T. (2012). Analisis Pengaruh Mekanisme Corporate Governance Terhadap Financial Distress.
  9. Dianova, A., & Nahumury, J. (2019). Investigating the effect of liquidity, leverage, sales growth and good corporate governance on financial distress. Journal of Accounting and Strategic, 2(2), 142–156.
  10. Dirman, A. (2020). Financial Distress: The Impact of Institusional Ownership, Independent Commisioners, Managerial Ownership, and Audit Committe. International Journal of Management Studies and Social Science Research, 2(4), 202–210.
  11. Dixon, R., Guariglia, A., & Vijayakumar, R. (2017). Managerial ownership, corporate governance, and firms exporting decisions: Evidence from Chinese listed companies. The European Journal of Finance, 23(7), 802–840.
  12. Ersyafdi, I. R., Wani, D. N., & Aryani, H. F. (2022). Pengaruh Rasio Keuangan, Karakteristik Perusahaan dan Intellectual Capital Terhadap Financial Distress Pada Perusahaan Lembaga Keuangan. INOVASI, 18(3), 581–590.
  13. Fadhilah, F., & Syafruddin, M. (2013). Analisis Pengaruh Karakteristik Corporate Governance Terhadap Kemungkinan Financial Distress.
  14. Fathonah. (2016). Pengaruh Penerapan Good Corporate Governance terhadap Financial Distress. Jurnal Ilmiah Akuntansi, 1(2).
  15. Febriyanti, F. N., & Khalifaturofi’ah, S. O. (2023). Good Corporate Governance Dan Financial Distress Pada Perusahaan Manufaktur Di Indonesia. Jurnal Ekonomi, 28(2), 274–291.
  16. Freitas Cardoso, G., Peixoto, F. M., & Barboza, F. (2019). Board Structure and Financial Distress in Brazilian Firms. International Journal of Management Finance, 15(5), 813–828.
  17. Geng, R., Bose, I., & Chen, X. (2015). Prediction of financial distress: An empirical study of listed Chinese companies using data mining. European Journal of Operational Research, 241(1), 236–247.
  18. Ghozali, I. (2018). Aplikasi Analisis Multivariate Dengan Program IBM SPSS 25. Badan Penerbit UNDIP.
  19. Habib, A., Uddin Bhuiyan, B., & Islam, A. (2013). Financial Distress, Earnings Management and Market Pricing of Accruals During The Global Financial Crisis. Managerial Finance, 39(2), 155–180.
  20. Hakim, Zulman, M., Abbas, D. S., & Nasution, W. A. (2020). Pengaruh Profitabilitas, Likuiditas, Leverage, Kepemilikan Manajerial Dan Kepemilikan Institusional terhadap Financial Distress (Studi Empiris pada Perusahaan Sektor Property & Real Estate yang terdaftar di BEI Periode 2016-2018). Competitive Jurnal Akuntansi Dan Keuangan, 4(1), 12–22.
  21. Hanafi, J., & Breliastiti, R. (2016). Peran Mekanisme Good Corporate Governance Dalam Mencegah Perusahaan Mengalami Financial Distress. Jurnal Online Insan Akuntansi, 1(1), 195–220.
  22. Handriani, E., Ghozali, I., & Hersugodo, H. (2021). Corporate Governance on Financial Distress: Evidence From Indonesia. Management Science Letters, 11(6), 1833–1844.
  23. Hanifah, O. E., & Purwanto, A. (2013). Pengaruh Struktur Corporate Governance dan Financial Indicators Terhadap Kondisi Financial Distress. Diponegoro Journal of Accounting, 648–662.
  24. Hariyani, A. A., & Kartika, A. (2021). Pengaruh Corporate Governance Terhadap Financial Distress. Owner: Jurnal Riset Dan Akuntansi, 5(2), 307–318.
  25. Helastica, M., & Paramita, S. (2020). Analysis Financial Distress Prediction With Model Altman Z-Score, Zmijewski, And Grover In the Sub Sector Retail Listed on the Indonesian Stock Exchange (IDX) 2014-2018 period. In Proceedings of the International Conference on Environmental and Technology of Law, Business and Education on Post Covid 19, ICETLAWBE.
  26. Helena, S., & Saifi, M. (2018). Pengaruh Corporate Governance Terhadap Financial Distress (Studi Pada Perusahaan Transportasi Yang Terdaftar Di Bursa Efek Indonesia Periode 2013-2016. Jurnal Administrasi Bisnis, 60(2), 143–152.
  27. Hikmawati, V. B. (2022). Pengaruh Good Corporate Governance terhadap Financial Distress (Studi pada perusahaan transportasi yang terdaftar di Bursa Efek Indonesia periode 2013-2016). Jurnal Administrasi Bisnis, 459–474.
  28. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
  29. Keasey, K., & Watson, R. (2019). Financial Distress Prediction Models: A Review of Their Usefulness. Risk Management, 35–48.
  30. Khasanah, S. N. U., Sukesti, F., & Nurcahyono, N. (2021). Pengaruh Operating Capacity, Sales Growth, Arus Kas dan Leverage Terhadap Financial Distress. SUSTAINABLE, 1(2), 357–371.
  31. Khoirunnisa Harahap, A., Maysaroh, S., & Hisabi, A. (2022). Pengaruh Good Corporate Governance, Leverage, Profitabilitas dan Ukuran Perusahaan Terhadap Financial Distress Pada Perusahaan Barang Konsumsi Yang Terdaftar Di Bursa Efek Indonesia. Anindyaguna Ekonobisnis: Jurnal Ekonomi Dan Bisnis STIE Anindyaguna, 4(2), 425–438.
  32. Kristanti, F. T., Rahayu, S., & Huda, A. N. (2016). The determinant of financial distress on Indonesian family firm. Procedia-Social and Behavioral Science, 219, 440–447.
  33. Li, D., Zhang, L., Yi, N., & Chen, X. (2021). Does institutional pressure foster corporate green innovation? Evidence from China’s top 100 companies. https://doi.org/10.1016/j.jclepro.2018.03.257
  34. Manzaneque, M., Priego, A. M., & Merino, E. (2016). Corporate Governance effect on Financial Distress likelihood: Evidence from spain. Revista de Contabilidad, 19(1), 111–121.
  35. Mariano, S. S. G., Izadi, J., & Pratt, M. (2021). Can we predict the likelihood of financial distress in companies from their corporate governance and borrowing? International Journal of Accounting & Information Management, 29(2), 305–323.
  36. Ma’ruf, M. F., & Kresnamurti, R, K. (2018). Pengaruh Good Corporate Governance dan Ukuran Perusahaan Terhadap Financial Distress pada Perusahaan Manufaktur Sektor Aneka Industri Yang Terdaftar Di Bursa Efek Indonesia. The World Of Financial Administration Journal.
  37. Masak, F., & Noviyanti, S. (2019). Pengaruh Karakteristik Komite Audit Terhadap Financial Distress. International Journal of Social Science and Business, 3(3), 237–247.
  38. Mayda, A. (2021). Pengaruh Karakteristik Dewan Direksi Terhadap Financial Distress (Studi Empiris Pada Perusahaan BUMN di Indonesia Tahun 2015-2019.
  39. Munawar, I., Firli, A., & Iradianty, A. (2018). Pengaruh Good Corporate Governance Terhadap Financial Distress (Studi Pada Perusahaan Sub Sektor Tekstil & Garmen Di Bursa Efek Indonesia Periode Tahun 2012-2016. EProceeding of Management, 5(2).
  40. Nasiroh, Y., & Priyadi, M. (2018). Pengaruh Penerapan Good Corporate Governance Terhadap Financial Distress. Jurnal Ilmu Dan Riset Akuntansi, 7(9).
  41. Ninh, B. P. V, Do Thanh, T., & Hong, D. V. (2018). Financial Distress and Bankruptcy Prediction: An Appropriate Model for Listed Firms in Vietnam. Economic Systems, 42(4), 616–624.
  42. Paramita, V. S., & Ali, A. (2023). Can Profitability Moderate the Impact of Green Investment, Corporate Social Responsibility, and Good Corporate Governance on Company Value on the SRI-KEHATI Index? International Journal of Finance Research, 4(4), 320–338.
  43. Radiansyah, J. L. D. P. (2013). Pengaruh Efisiensi Operasi, Arus Kas Operasi, Dan Pertumbuhan Perusahaan Dalam Memprediksi Financial Distress. Jurnal Akuntansi, 1(3).
  44. Rahma, N., & Dillak, V. (2021). Pengaruh Struktur Modal, Ukuran Perusahaan, Sales Growth Dan Intangible Asset Terhadap Financial Ditsress. Jurnal Ilmiah Manajemen Ekonomi & Akuntansi, 5(3), 378–395.
  45. Salloum, C., Azzi, G., & Gebrayel, E. (2014). Audit Committee and Financial Distress in the Middle East Context: Evidence from Lebanese. Financial Institutions: International Strategic Management Review, 2(1), 39–45.
  46. Septiani, N. M. I., & Dana, I. M. (2019). Pengaruh Likuiditas, Leverage dan Kepemilikan Institusional Terhadap Financial Distress Pada Perusahaan Property dan Real Estate.
  47. Setiawan, H., & Amboningtyas, D. (2018). Financial Ratio Analysis for Predicting Financial Distress Conditions (Study on Telecommunication Companies Listed in Indonesia Stock Exchange Period 2010-2016. Journal of Management, 4(4).
  48. Setyowati, W., & Sari, N. R. N. (2019). Pengaruh Likuiditas, Operating Capacity, Ukuran Perusahaan dan Pertumbuhan Penjualan Terhadap Financial Distress (Studi Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2016-2017. Magisma: Jurnal Ilmiah Ekonomi Dan Bisnis, 7(2), 73–84.
  49. Shahwan, T. M. (2015). The Effects of Corporate Governance on Financial Distress: Evidence From Egypt. Corporate Governance, 15(5), 641–662.
  50. Sun, J., Li, H., Huang, Q. H., & He, K. Y. (2014). Predicting Financial Distress and Corporate Failure: A review from the state of the art definitions, modeling, sampling, and featuring approaches. Knowledge-Based System, 57, 41–56.
  51. Sunarwijaya, I. K. (2017). Pengaruh Likuiditas, Leverage, Kepemilikan Manajerial dan Kepemilikan Institusional Terhadap Kemungkinan Terjadinya Financial Distress. Jurnal Ilmu Manajemen Mahasaraswati, 7(7).
  52. Susilawati, D., Sofianty, D., & Sukarmanto, E. (2017). The Effect of Profitability, Company Size, and Leverage on Financial Distress (Empirical Studies on Sub Sector Oil and Gas Listed on the Indonesian Stock Exchanges for the Period 2010-2015. Prosiding Akuntansi, 208–214.
  53. Susilowati, Y., Puspitasari, E., & Fauziyah, N. A. (2020). The Determinants of Financial Distress: An Empirical Investigation of Indonesian Firms. International Journal of Environmental Science, 5.
  54. Sutrisno. (2017). Manajemen Keuangan Teori Konsep dan Aplikasi. Ekonisia.
  55. Triwahyuningtyas, M., & Muharam, H. (2012). Analisis Pengaruh Struktur Kepemilikan, Ukuran Dewan Komisaris Independen, Likuiditas dan Leverage Terhadap Terjadinya Financial Distess (Studi Pada Perusahaan Manufaktur Yang Terdaftar di Bursa Efek Indonesia Periode 2008-2010.
  56. Widhiari, N. L., & Merkusiwati, N. K. L. A. (2015). Pengaruh Rasio Likuiditas, Leverage, Operating Capacity dan Sales Growth Terhadap Financial Distress. E-Jurnal Akuntansi Udayana, 11(2), 456–469.
  57. Wolk, D. A., Mancuso, L., Kliot, D., Arnold, S. E., & Dickerson, B. C. (2013). Familiriaty-based Memory as an Early Cognitive Marker of Preclinical and Prodromal AD. Neuropsychologia, 51(6), 1094–1102.
  58. Yazdanfar, D., & Ohman, P. (2020). Financial Distress Determinants Among SMEs: Empirical Evidence From Sweden. Journal of Economic Studies, 47(3), 547–560.
  59. Yudha, A., & Fuad, F. (2014). Analisis Pengaruh Penerapan Mekanisme Corporate Governance terhadap kemungkinan perusahaan mengalami kondisi Financial Distress (Studi empiris Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia Tahun 2010-2012). Diponegoro Journal of Accounting, 430–441.
  60. Zelie, E. M. (2019). Determinants of Financial Distress in Case of Insurance Companies in Ethiophia. Research Journal of Finance and Accounting, 10(15), 27–32.