Abstract
AbstractObjective – The purpose of this study is to determine the influence of corporate governance, profitability, and firm size on financial distress and its impact to the company value of the sub-sectors companies in infrastructure, utilities, and transportation that are listed in Indonesia Stock Exchange for the period of 2011-2015. Design/methodology – The secondary data in the form of financial statements are collected from the sub-sector companies in infrastructure, utilities, and transportation thand from the Indonesian Capital Market Directory (ICMD). The data is taken from the companies listed in Indonesia Stock Exchange in period of 2011-2015. Samples are determined by using purposive sampling method and the samples are selected based on certain considerations or criteria. The analysis model used in this study is path analysis. Results – The results show that in the first line; corporate governance, profitability and firm size, both partially and simultaneously have significant influence on financial distress of the sub-sector companies on infrastructure, utilities, and transportation that are listed in Indonesia Stock Exchange. In the second track, corporate governance, profitability, firm size and financial distress both partially and simultaneously have significant influence on the company value in the sub-sectors of infrastructure, utilities, and transportation that are listed in Indonesia Stock Exchange. Research limitations/implications – The time of observation of the study is only 5 years and it does not properly reflect the actual phenomenon. The samples of the study are only limited to Sub-Sector companies in Infrastructure, Utilities, Transportation even though there are still many other companies that are listed in Indonesia Stock Exchange.
Highlights
The development of the company as an effort to anticipate the sharp competition in an increasingly global market like today will always be carried out by companies, both large and small companies
The results show that in the first line; corporate governance, profitability and firm size, both partially and simultaneously have significant influence on financial distress of the sub-sector companies on infrastructure, utilities, and transportation that are listed in Indonesia Stock Exchange
To see the influence of corporate governance, profitability, and company size on financial distress and its impact to company value on the Companies of Sub-Sectors in Infrastructure, Utilities, and Transportation in Indonesia Stock Exchange will be analyzed by using path analysis
Summary
The development of the company as an effort to anticipate the sharp competition in an increasingly global market like today will always be carried out by companies, both large and small companies. Entering the capital market is one such effort, because the capital market has an important role in economic activities, especially in the countries that adhere to the market economy system. Public companies that are listed in the stock exchange every year must submit annual reports both monetary and nonmonetary to the Stock Exchange and investors. This is evidenced by the increasing number of go public companies that are listed in the stock exchange and the increasing number of Indonesian people who are starting to get involved with capital markets. There are several adverse impacts that can be felt from global financial crisis in 2008 which resulted in weakening the business activities in general. The impact of the financial crisis can influence the decline in the company value as a result of a decrease in sales so that if the company does not sur-
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