Financial Ratio, Board Diversity and Financial Distress: Evidence from Indonesia

Rifza Fizabaniyah, Nurcahyono Nurcahyono (), Angelina Dwi Astuti Argojuwono and Retno Indah Hernawati
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Rifza Fizabaniyah: Universitas Muhammadiyah Semarang, Department of Accounting
Nurcahyono Nurcahyono: Universitas Muhammadiyah Semarang, Department of Accounting
Angelina Dwi Astuti Argojuwono: Universitas Dian Nuswantoro, Department of Accounting
Retno Indah Hernawati: Universitas Dian Nuswantoro, Department of Accounting

A chapter in Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022), 2023, pp 307-320 from Springer

Abstract: Abstract The goal of starting a business is to be able to maximize the wealth of the shareholders as well as the value of an institution. A company’s financial condition is critical to be appropriately managed because if the company experiences economic instability, the company will experience difficulties resulting in bankruptcy. This study aimed to identify manufacturing sector companies participating in financial distress predictors of independent commissioners, solvency, profitability, liquidity, institutional ownership and managerial ownership. The method used is a quantitative descriptive method. The population for this research is manufacturing sector companies listed on the IDX for 2020–2021. The purposive sampling technique is the technique used in sampling in this study. The results of this study indicate that the independent board of commissioners, profitability, liquidity, institutional ownership structure and managerial ownership structure have a negative effect on financial distress. In contrast, solvency has no positive impact on financial distress.

Keywords: Financial distress; independent commissioners; profitability; liquidity; solvency; institutional ownership and managerial ownership (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-154-8_27

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DOI: 10.2991/978-94-6463-154-8_27

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