Determinan Faktor yang Mempengaruhi Financial Distress Perusahaan Manufaktur Sub Sektor Barang Dan Konsumsi

Abstract

The management of companies is acutely aware that to maintain their existence, they must try to avoid increasing the risk of financial distress. This study aims to determine the factors that affect financial distress in manufacturing companies in the food and beverage sub-sector on the Indonesia Stock Exchange. This research was conducted on 33 manufacturing companies in the goods and consumption sub-sector on the Indonesia Stock Exchange. The principal theory used in this study refers to agency theory. Conflicts of interest between principals and agents encourage agents to take advantage of the excess information they have to hide problems occurring within the company. As a result, stakeholders will be harmed, considering the information they receive is irrelevant. In this study, the variables used include financial distress, the proportion of independent commissioners, audit committee size, liquidity, and working capital turnover. This research used the data from 2016 to 2020. The data analysis method used in this study is binary logistic regression. Data processing is conducted by Stata 15. The proportion of the board of commissioners, the number of audit committees, company liquidity, and activity ratios were used in this research. Based on the results of hypothesis testing, it was found that the proportion of independent commissioners had no significant effect on financial distress, while the audit committee, corporate liquidity, and working capital turnover affected financial distress in manufacturing companies in the goods and consumption sub-sector on the Indonesia Stock Exchange.