The Effect of Corporate Governance Mechanism on Financial Distress in State-Owned Enterprises

Ahsan, Fuad and Payangan, Otto Randa and Nursyamsi, Idayati (2020) The Effect of Corporate Governance Mechanism on Financial Distress in State-Owned Enterprises. In: ICAME 2019, 25 October 2019, Makassar, Indonesia.

[img]
Preview
Text (PDF)
eai.25-10-2019.2295366.pdf - Published Version

Download (200kB) | Preview

Abstract

This study aims to analyze the influence of corporate governance on a company's financial distress. In discussing corporate governance specifically, it is seen from specific aspects which include the independence board, CEO ownership, executive director ownership, family ownership, independent audit committee, and audit committee expertise in terms of the financial condition of the affected company. There are 16 state-owned enterprises that are presented in the Indonesia Stock Exchange, where 8 companies are indicated to be depressed and 8 companies that are indicated to be healthy in the 2015-2018 period. After doing research, it was found that corporate governance variables did not have a significant effect on corporate financial difficulties, such as the return on asset (ROA) variable that influenced the company's financial distress variables, so it can be explained how corporate governance cannot be used as a tool to improve performance corporate finance in Indonesia.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: good corporate governance independence board ceo ownership executive director ownership family ownership independent audit committee and audit committee expertise
Subjects: H Social Sciences > H Social Sciences (General)
Depositing User: EAI Editor IV
Date Deposited: 09 Apr 2021 10:20
Last Modified: 09 Apr 2021 10:20
URI: https://eprints.eudl.eu/id/eprint/2405

Actions (login required)

View Item View Item