The Role of Good Corporate Governance in Moderating the Effect of Financial Ratio on Financial Distress (Study of Consumer Sector Companies Listed on the Indonesia Stock Exchange Over Period 2018-2020)
Financial distress is a condition where management fails to manage company finances. This study aims to determine the effect of leverage, net profit margin, liquidity, and sales growth on financial distress with corporate governance as a moderating variable. This sample used all consumer goods secto...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | Indonesian |
| Published: |
Universitas Dian Nuswantoro
2023-03-01
|
| Series: | Jurnal Penelitian Ekonomi dan Bisnis |
| Online Access: | https://publikasi.dinus.ac.id/index.php/jpeb/article/view/6409 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850229518007009280 |
|---|---|
| author | Gabriella Ika Riesta Ira Septriana |
| author_facet | Gabriella Ika Riesta Ira Septriana |
| author_sort | Gabriella Ika Riesta |
| collection | DOAJ |
| description | Financial distress is a condition where management fails to manage company finances. This study aims to determine the effect of leverage, net profit margin, liquidity, and sales growth on financial distress with corporate governance as a moderating variable. This sample used all consumer goods sector companies listed on the Indonesia Stock Exchange for the 2018-2020 period. Sampling was used with the purposive sampling technique and selected 25 companies. Data analysis used multiple linear regression and the absolute difference value test. The results are that the variables of leverage, net profit margin, and liquidity affect predicting financial distress. Meanwhile, sales growth does not affect financial distress. As measured by managerial ownership, corporate governance can moderate the effect of liquidity on financial distress. Still, it cannot moderate the effect of leverage, net profit margin, and sales growth on financial distress.
Keywords:
leverage, net profit margin, liqudity, sales growth, financial distress, good corporate governance |
| format | Article |
| id | doaj-art-fdc8787d1f7c47bcbb6b5cbd7905cf3f |
| institution | OA Journals |
| issn | 2442-5028 2460-4291 |
| language | Indonesian |
| publishDate | 2023-03-01 |
| publisher | Universitas Dian Nuswantoro |
| record_format | Article |
| series | Jurnal Penelitian Ekonomi dan Bisnis |
| spelling | doaj-art-fdc8787d1f7c47bcbb6b5cbd7905cf3f2025-08-20T02:04:11ZindUniversitas Dian NuswantoroJurnal Penelitian Ekonomi dan Bisnis2442-50282460-42912023-03-0181101810.33633/jpeb.v8i1.64094763The Role of Good Corporate Governance in Moderating the Effect of Financial Ratio on Financial Distress (Study of Consumer Sector Companies Listed on the Indonesia Stock Exchange Over Period 2018-2020)Gabriella Ika Riesta0Ira Septriana1Accounting Department, Faculty of Economics and Business, Universitas Dian NuswantoroAccounting Department, Faculty of Economics and Business, Universitas Dian NuswantoroFinancial distress is a condition where management fails to manage company finances. This study aims to determine the effect of leverage, net profit margin, liquidity, and sales growth on financial distress with corporate governance as a moderating variable. This sample used all consumer goods sector companies listed on the Indonesia Stock Exchange for the 2018-2020 period. Sampling was used with the purposive sampling technique and selected 25 companies. Data analysis used multiple linear regression and the absolute difference value test. The results are that the variables of leverage, net profit margin, and liquidity affect predicting financial distress. Meanwhile, sales growth does not affect financial distress. As measured by managerial ownership, corporate governance can moderate the effect of liquidity on financial distress. Still, it cannot moderate the effect of leverage, net profit margin, and sales growth on financial distress. Keywords: leverage, net profit margin, liqudity, sales growth, financial distress, good corporate governancehttps://publikasi.dinus.ac.id/index.php/jpeb/article/view/6409 |
| spellingShingle | Gabriella Ika Riesta Ira Septriana The Role of Good Corporate Governance in Moderating the Effect of Financial Ratio on Financial Distress (Study of Consumer Sector Companies Listed on the Indonesia Stock Exchange Over Period 2018-2020) Jurnal Penelitian Ekonomi dan Bisnis |
| title | The Role of Good Corporate Governance in Moderating the Effect of Financial Ratio on Financial Distress (Study of Consumer Sector Companies Listed on the Indonesia Stock Exchange Over Period 2018-2020) |
| title_full | The Role of Good Corporate Governance in Moderating the Effect of Financial Ratio on Financial Distress (Study of Consumer Sector Companies Listed on the Indonesia Stock Exchange Over Period 2018-2020) |
| title_fullStr | The Role of Good Corporate Governance in Moderating the Effect of Financial Ratio on Financial Distress (Study of Consumer Sector Companies Listed on the Indonesia Stock Exchange Over Period 2018-2020) |
| title_full_unstemmed | The Role of Good Corporate Governance in Moderating the Effect of Financial Ratio on Financial Distress (Study of Consumer Sector Companies Listed on the Indonesia Stock Exchange Over Period 2018-2020) |
| title_short | The Role of Good Corporate Governance in Moderating the Effect of Financial Ratio on Financial Distress (Study of Consumer Sector Companies Listed on the Indonesia Stock Exchange Over Period 2018-2020) |
| title_sort | role of good corporate governance in moderating the effect of financial ratio on financial distress study of consumer sector companies listed on the indonesia stock exchange over period 2018 2020 |
| url | https://publikasi.dinus.ac.id/index.php/jpeb/article/view/6409 |
| work_keys_str_mv | AT gabriellaikariesta theroleofgoodcorporategovernanceinmoderatingtheeffectoffinancialratioonfinancialdistressstudyofconsumersectorcompanieslistedontheindonesiastockexchangeoverperiod20182020 AT iraseptriana theroleofgoodcorporategovernanceinmoderatingtheeffectoffinancialratioonfinancialdistressstudyofconsumersectorcompanieslistedontheindonesiastockexchangeoverperiod20182020 AT gabriellaikariesta roleofgoodcorporategovernanceinmoderatingtheeffectoffinancialratioonfinancialdistressstudyofconsumersectorcompanieslistedontheindonesiastockexchangeoverperiod20182020 AT iraseptriana roleofgoodcorporategovernanceinmoderatingtheeffectoffinancialratioonfinancialdistressstudyofconsumersectorcompanieslistedontheindonesiastockexchangeoverperiod20182020 |