The Effect of Corporate Governance Mechanism and Company Size on Financial Distress

MUJIYATI MUJIYATI(1*), KURNIA RINA ARIANI(2), HAFID NUR PRATAMA(3)


(1) MUHAMMADIYAH SURAKARTA UNIVERSITY
(2) MUHAMMADIYAH SURAKARTA UNIVERSITY
(3) MUHAMMADIYAH SURAKARTA UNIVERSITY
(*) Corresponding Author

Abstract


This study aims to examine the effect of corporate governance mechanisms and company size on the condition of a company experiencing financial distress. The indicators used to measure the corporate governance mechanism in the sample companies are the board of directors, the proportion of independent commissioners, managerial ownership, institutional ownership, and the audit committee. Meanwhile, financial distress is measured using a Springate model. This study uses secondary data from the entire population of mining companies listed on the IDX in 2016-2019. The sampling technique used purposive sampling. The analytical method used is ordinal logistic regression. The results of hypothesis testing show that the board of directors, the proportion of independent commissioners, the audit committee, and company size do not significantly affect the condition of the company experiencing financial distress. Meanwhile, managerial ownership and institutional ownership have a significant effect on companies experiencing financial distress.


Keywords


Corporate governance; company’s size; financial distress

Full Text:

PDF

References


Ariesta, D. R., & Chariri, A. (2012). Analisis Pengaruh Struktur Dewan Komisaris, Struktur Kepemilikan Saham Dan Komite Audit Terhadap Financial Distress (Studi Empiris Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia). Fakultas Ekonomika Dan Bisnis.

Christella, C., & Osesoga, M. S. (2019). Pengaruh Leverage, Profitabilitas, Kepemilikan Institusional, Likuiditas, Dan Ukuran Perusahaan Terhadap Financial Distress. Ultimaccounting: Jurnal Ilmu Akuntansi, 11(1), 13–31.

Dewi, P. S., Wahyuni, P. D., & Umam, D. C. (2020). Pengaruh Corporate Governance Dan Ukuran Perusahaan Terhadap Financial Distress (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Periode 2016-2018). Proseding Seminar Nasional Akuntansi, 3(1).

Fathonah, A. N. (2017). Pengaruh Penerapan Good Corporate Governance Terhadap Financial Distress. JIA (Jurnal Ilmiah Akuntansi), 1(2).

Fitdini, J. E., & Yuyetta, E. N. A. (2009). Hubungan Struktur Kepemilikan, Ukuran Dewan, Dewan Komisaris Independen, Ukuran Perusahaan, Leverage, Dan Likuiditas Dengan Kondisi Financul Distress (Studi Pada Perusahaan Manufaktur Periode 2004-2007).

Hanifah, O. E., & Purwanto, A. (2013). Pengaruh Struktur Corporate Governance Dan Financial Indicators Terhadap Kondisi Financial Distress (Studi Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Periode 2009-2011). Fakultas Ekonomika Dan Bisnis.

Harahap, L. W. (2017). Pengaruh Mekanisme Corporate Governance Dan Firm Size Terhadap Kondisi Financial Distress Pada Perusahaan Property And Real Estate Yang Terdaftar Di Bei Tahun 2010-2014. Jurnal Riset Akuntansi Dan Bisnis, 17(2).

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.

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.

Loman, R. K., & Male, M. I. (2015). Determinan Terhadap Prediksi Financial Distress Pada Perusahaan Manufaktur Di Bursa Efek Indonesia. Jurnal Riset Ekonomi Dan Manajemen, 15(2), 371–381.

Platt, H. D., & Platt, M. B. (2002). Predicting Corporate Financial Distress: Reflections On Choice-Based Sample Bias. Journal Of Economics And Finance, 26(2), 184–199.

Susilawati, D., Sofianty, D., & Sukarmanto, E. (2017). Pengaruh Profitabilitas, Ukuran Perusahaan Dan Leverage Terhadap Financial Distress Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia (BEI)(Studi Empiris Pada Perusahaan Sub Sektor Minyak Dan Gas Bumi Periode Tahun 2010-2015). Prosiding Akuntansi,(2460–6561), 208–214.

Setiawan A, Sukarmanto E, Fadilah S. Pengaruh Ukuran Dewan Direksi. 2016;

Ulfa, A., Rupa, I. W., & Jayanti, L. G. P. S. E. (N.D.). Pengaruh Good Corporate Governance, Leverage, Profitabilitas Dan Likuiditas Terhadap Financial Distress.

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.


Article Metrics

Abstract view : 52 times
PDF - 0 times

DOI: https://doi.org/10.26714/mki.11.2.2021.%25p

Refbacks

  • There are currently no refbacks.


 -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

MAKSIMUM: Media Akuntansi Universitas Muhammadiyah Semarang 
ISSN 2087-2836 (print) | ISSN 2580-9482 (online)
Organized by Department of Accounting, Faculty of Economics, Universitas Muhammadiyah Semarang, Semarang, Indonesia
Published by Program Studi Akuntansi Universitas Muhammadiyah Semarang
W : https://jurnal.unimus.ac.id/index.php/MAX
E : maksimum@unimus.ac.id, nurcahyo@unimus.ac.id

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