The Influence of Financial Indicators, Corporate Governance and Macroeconomic Variables on Financial Distress (original) (raw)

This study aims to analyzes the effect of financial indicators, corporate governance and macroeconomic variables on financial distress of manufacturing companies listed in Indonesian Stock Exchange (IDX) for the period 2016-2018. This research is expected to provide solutions and insight for the companies in tackling financial distress. This research employs quantitative approach. The sampling technique is purposive sampling method and the final sample is 136 companies. This research uses descriptive statistics and logistic regression analysis. The main findings of the research show that liquidity ratio has a negative and significant effect on financial distress, leverage ratio has a positive and significant effect on financial distress, activity ratio has a negative and significant effect on financial distress and the size of the board of directors has a negative and significant effect on financial distress. Companies must pay attention to financial performance and corporate govern...