Peran Mekanisme Good Corporate Governance dalam Mencegah Perusahaan Mengalami Financial Distress

Abstract

This study aims to determine the role of the mechanisms of good corporate governance (GCG) in an effort to prevent financial distress in public companies in Indonesia. The population is a manufacturing company listed on the Indonesia Stock Exchange in 2011 - 2013, with a sample of 20 companies. Data were analyzed using logistic regression analysis techniques. The results showed that the size of the board of directors and managerial ownership has a negative effect on the financial distress, institutional ownership has no effect on the occurrence of financial distress, while the influence of the proportion of independent directors can not be deduced. Based on the results of this study concluded that the size of the board of directors and the proportion of managerial ownership has a role in minimizing the potential for the occurrence of potential distress in manufacturing companies. Keywords: good corporate governance, financial distress, manufacturing company, 2011-201