Does good corporate governance predict financial distress?
DOI:
https://doi.org/10.22219/jaa.v7i4.36049Keywords:
Corporate Social Responsibility Disclosure, Financial Distress, Good Corporate Governance, Institutional OwnershipAbstract
Purpose: The primary materials sector is critical as the main foundation for most industries; this sector provides raw materials and basic materials essential for producing various products. This study aims to determine non-financial factors, especially corporate governance factors, that can influence the occurrence of financial Distress in Raw Materials sub-sector companies listed on the Indonesia Stock Exchange (IDX) in 2019-2021.
Methodology/approach: This research uses secondary data, with 90 samples from 30 companies. The sampling technique applied was purposive sampling, and data analysis was carried out through logistic regression using SPSS version 26.
Findings: The study's results showed that good corporate governance (GCG) and corporate social responsibility (CSR) disclosure did not affect financial distress. At the same time, institutional ownership has a positive effect on it.
Practical and Theoretical contribution/Originality: The novelty of this study is examines financial distress in the basic materials sector by analyzing the combined impact of good corporate governance (GCG), corporate social responsibility (CSR) disclosure, and institutional ownership.
Research Limitation: Data collection techniques for this research variables, such as good corporate governance and CSR disclosure, are based on the researcher's subjectivity in index assessment. The next suggestion from researchers is that there needs to be a reviewer to reduce subjective assessments.
Downloads
References
Alexandra, C., Jennefer, S., Meiden, C., Bisnis, I., Kwik, I., & Gie, K. (2022). Studi literatur : pengaruh faktor good corporate governance terhadap financial distress. Owner : Riset & Jurnal Akuntansi, xx, 111–122.
Alhazaimeh, A., Palaniappan, R., & Almsafir, M. (2014). The Impact of Corporate Governance and Ownership Structure on Voluntary Disclosure in Annual Reports among Listed Jordanian Companies. Procedia - Social and Behavioral Sciences, 129, 341–348. https://doi.org/10.1016/j.sbspro.2014.03.686
Amanda, Y.,& Tasman, A. (2019). Pengaruh likuiditas, leverage, sales growth, dan ukuran perusahaan terhadap financial distress pada perusahaan manufaktur yang terdaftar di bursa efek indonosia (bei) periode 2015 - 2017. Owner, 2(3), 453–462. https://doi.org/10.33395/owner.v6i4.1113
Astuti Kurniasih D, K. dini M. (2016). Pengaruh corporate governance terhadap kinerja keuangan dengan corporate social responsibility disclosure sebagai variabel intervening. Jurnal Akuntansi, 3(2), 23–39.
Avianty, Y. A., Lestari, D. I., Selatan, C., & Barat, J. (2020). Faktor - faktor yang mempengaruhi financial distress diperusahaan properti dan real estate. E-JURNAL ILMIAH EKONOMI BISNIS, 28(1), 84–97.
Bahari, A. (2023). Corporate Social Responsibility Dan Ketahanan Perusahaan Dalam Menghadapi Pandemik Di Asia Tenggara. Jurnal Akademi Akuntansi, 6(1), 1-19.
Balon, V., Kottala, S. Y., & Reddy, K. S. (2022). Mandatory corporate social responsibility and firm performance in emerging economies: An institution-based view. Sustainable Technology and Entrepreneurship, 1(3), 100023. https://doi.org/10.1016/j.stae.2022.100023
Benedickson, J., Muldoon, J., Eric Liguori, & E.Davis, P. (2015). Agency theory: The times are changing. Management Decision, 54(1), 174–193.
Buchanan, B., Cao, C. X., & Chen, C. (2018). Corporate social responsibility, firm value, and influential institutional ownership. Journal of Corporate Finance, pp. 52, 73–95. https://doi.org/10.1016/j.jcorpfin.2018.07.004
Budiningsih, & Kristanto, A. (2021). Analisis pengaruh mekanisme corporate governance terhadap kemungkinan terjadinya financial distress. Journal of Research in Business and Economics, 04(01), 85–126.
Cardoso, G. F., Peixoto, F. M., & Barboza, F. (2019). Board structure and financial Distress in Brazilian firms. International Journal of Managerial Finance, 15(5), 813–828. https://doi.org/10.1108/IJMF-12-2017-0283
Cinantya, M. (2021). Pengaruh corporate governance, financial indicators, dan ukuran perusahaan terhadap financial distress. E-Jurnal Akuntansi, 5(2), 62. https://doi.org/10.31000/competitive.v5i2.4196
Dina, Q. A., Dwi Aristi, M., & Rodiah, S. (2020). Peran good corporate governance dalam memoderasi pengaruh profitabilitas, leverage, dan corporate social responsibility (csr) terhadap nilai perusahaan. Jurnal Akuntansi Dan Ekonomika, 10(1), 139–148. https://doi.org/10.37859/jae.v10i1.1992
Eisenhardt, K. M., & Eisenhardt, K. M. (1989). Agency theory : an assessment and review. Academy of Management, 14(1), 57–74.
Fathya, A., & Kristanti, F. T. (2023). Pengaruh corporate governance terhadap indikasi financial distress dengan profitabilitas sebagai variabel moderasi. Jurnal Ilmiah MEA, 7(1), 489–503.
Fatmasita, A. P. (2021). Pengaruh Pandemi Covid-19 dan Nilai Tukar Rupiah terhadap Pergerakan Indeks Harga Saham Gabungan (IHSG) di Bursa Efek Indonesia (BEI). Jurnal Ilmiah Mahasiswa FEB Universitas Brawijaya, 9(2). https://jimfeb.ub.ac.id/index.php/jimfeb/article/view/7311
Feanie S, D. V. J. (2021). Pengaruh likuiditas, arus kas operasi, kepemilikan institusional, dan kepemilikan manjerial terhadap financial distress. Jurnal Ilmiah Akuntansi Dan Keuangan, 4(1), 56–66.
Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS 25. Badan Penerbit Universitas Diponegoro.
Gilang, M. (2019). Analisis pengaruh corporate governance perception index, ukuran perusahaan dan leverage terhadap financial distress : studi empiris pada perusahaan perserta cgpi yang terdaftar di bursa efek indonesia tahun 2012-2016. Diponegoro Journal of Accounting, 8(2007), 1–10.
Gupta, K., & Krishnamurti, C. (2018). Does corporate social responsibility engagement benefit distressed firms? The role of moral and exchange capital. Pacific Basin Finance Journal, pp. 50, 249–262. https://doi.org/10.1016/j.pacfin.2016.10.010
Hariyani, A. A., & Kartika, A. (2021). Pengaruh Corporate Governance Terhadap Financial disstres. Owner, 5(2), 307–318. https://doi.org/10.33395/owner.v5i2.413
Heryanto, R., & Juliarto, A. (2017). Pengaruh corporate social responsibility terhadap profitabilitas perusahaan. Diponegoro Journal of Accounting, 6, 1–8.
Irving, S., Purba, M., & Muslih, M. (2018). Pengaruh kepemilikan institusional, intelectual capital, dan leverage terhadap financial distress. Journal Accounting and Finance, 2(2), 27–40.
Jensen, M. &. (1976). Theory of the firm : managerial behaviour, agency cost and ownership structural. Journal of Financial Economics, 72(10), 1671–1696. https://doi.org/10.1177/0018726718812602
Karina D, S. I. (2020). Pengaruh csr terhadap nilai perusahaan dengan gcg sebagai pemoderasi. JRAMB, 6(1), 37–49.
Lei, L., Zheng, D., & Chen, X. D. (2022). Corporate social responsibility and corporate financialization—Based on information and reputation insurance effects. PLoS ONE, 17(7 July), 1–19. https://doi.org/10.1371/journal.pone.0271552
Mardahlia V., G. I. (2021). Pengaruh corporate governance terhadap financial distress (studi empiris pada perusahaan yang terdaftar di bursa efek indonesia tahun 2016-2018). Diponegoro Journal of Accounting, 1(69), 5–24.
Muslimin, D. W., & Bahri, S. (2022). Pengaruh gcg, ukuran perusahaan, dan sales growth terhadap financial distress. Owner : Riset & Jurnal Akuntansi, 7(1), 293–301. https://doi.org/10.33395/owner.v7i1.1249
Nazari, J. A., Hrazdil, K., & Mahmoudian, F. (2017). Assessing social and environmental performance through narrative complexity in CSR reports. Journal of Contemporary Accounting and Economics, 13(2), 166–178. https://doi.org/10.1016/j.jcae.2017.05.002
Nitami. (2020). Kesulitan keuangan: pengaruh struktur kepemilikan. Journal Business, 1(1), 93–102.
Nugrahani, T. S., Tri, Y., & Dewi, T. (2022). The effect of corporate social responsibility (CSR) and good corporate governance (GCG) on earning per share (EPS). Jurnal Akmenika, 19(1), 593–603.
Nugrahanti, Y. W. (2021). Pengaruh pengungkapan corporate social responsibility terhadap financial distress dengan mekanisme corporate governance sebagai pemoderasi. Simposium Nasional Perpajakan, 1(1), 45–60.
Nur, E., & Yuyetta, A. (2019). Analisis pengaruh mekanisme corporate governance terhadap probabilitas terjadinya financial distress. Diponegoro Journal Of Accounting, 8, 1–11.
Purwaningsih, R. W., & Aziza, N. (2019). Pengaruh corporate social responsbility terhadap financial distress dimoderasi oleh siklus hidup perusahaan pada tahap mature. Jurnal Akuntansi, 9(3), 173–186. https://doi.org/10.33369/j.akuntansi.9.3.173-186
Radinda, A., & H. (2023). Pengaruh kepemilikan manajerial, kepemilikan institusional, karakteristik ceo (gender, tingkat pendidikan, pengalaman), dan ukuran perusahaan terhadap teratasinya financial distress. Jurnal Ekonomi Trisakti, 3(1), 693–704.
Sudirman, I. (2023). Penilaian kinerja keuangan menggunakan metode camel pada pt bank rakyat indonesia tbk, cabang rantepao toraja utara. Accounting & Finance, 1(1), 35–45.
Susilowati, F., & Harsono, M. (2020). Implikasi corporate social responsibility dalam good corporate governance untuk mengurangi konflik keagenan. Akmenika: Jurnal Akuntansi Dan Manajemen, 17(1). https://doi.org/10.31316/akmenika.v17i1.659
Tampubolon, L. Y., Fahria, R., & Maulana, A. (2020). Pengaruh corporate social responsibility terhadap financial distress: peran moderasi firm life cycle. Prosiding Biema, 1, 739–750.
Utami, Y. Z., & Taqwa, S. (2023). Pengaruh leverage, ukuran perusahaan, pertumbuhan penjualan,f kepemilikan manajerial dan kepemilikan institusional terhadap inancial distress. Jurnal Eksplorasi Akuntansi, 5(2), 539–552. https://doi.org/10.24036/jea.v5i2.720
Widhiari, N. L. M. A., & Merkusiwati, N. K. L. A. (2015). Pengaruh rasio likuiditas, leverage, operating capacity dan sales growth terhadap financial distress. E-Jurnal Akuntansi, 11(2), 456–469.
Yasmine, A. Q., & Alvia, L. (2023). Analisis faktor determinan financial distress ( studi empiris pada perusahaan go public di indonesia ). Jurnal Ekonomi, Akuntansi Dan Manajemen, 2(3).
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Zidni Husnia Fachrunnisa, Ika Nuriya Azizah, Ningrum Pramudiati
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Jurnal Akademi Akuntansi is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
Jurnal Akademi Akuntansi dilisensikan di bawah lisensi Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International.
Penulis yang menerbitkan artikel di jurnal ini menyetujui ketentuan berikut:
- Penulis mempertahankan hak cipta dan memberikan hak jurnal atas publikasi pertama dengan karya yang secara serentak dilisensikan di bawah Lisensi Pengaitan Creative Commons yang memungkinkan orang lain untuk berbagi karya dengan pengakuan atas karya penulis dan publikasi awal dalam jurnal ini.
- Penulis dapat masuk ke dalam pengaturan kontrak tambahan yang terpisah untuk distribusi non-eksklusif versi karya jurnal yang diterbitkan (misalnya, mempostingnya ke repositori institusional atau mempublikasikannya dalam sebuah buku), dengan pengakuan publikasi awalnya di jurnal ini.
- Penulis diizinkan dan didorong untuk memposting pekerjaan mereka secara online (misalnya, di repositori institusional atau di situs web mereka) sebelum dan selama proses pengajuan, karena dapat mengarah pada pertukaran produktif, serta kutipan pekerjaan sebelumnya dan yang lebih besar (Lihat Pengaruh Akses Terbuka).
