Abstract
This research examines the influence of Corporate Governance on Firm Performance measured by Tobin's Q and Financial Distress measured by Z-score. The samples used were 72 companies engaged in the manufacturing industry are listed on the Indonesia Stock Exchange (BEI) for five years from 2011 to 2015. The analytical methods used in this research is panel data regression, discriminant analysis, and logistic regression. The results showed that (I) there is no significant impact between corporate governance practices on firm performance. (2) there is negative impact between corporate governance practices on financial distress. Then, the companies need to increase corporate governance in order to avoid possibility of financial distress and for the investor before making an investment should consider the factors that affect the firm performance and financial distress
Highlights
Abstrak: Jika Perusahaan dapat melaksanakan praktek yang baik, maka dapat melindungi perusahaan terhadap resiko kebangkrutan
The results showed that (1) there is no significant impact between corporate governance practices on firm performance. (2) there is negative impact between corporate governance practices on financial distress
Penelitian ini juga menggunakan variabel leverage, current ratio, book to market ratio, return on sales, firm size, capital intensity, institutional ownership, dan ownership concentration sebagai variabel kontrol untuk mengetahui bagaimana pengaruhnya terhadap kinerja perusahaan dan financial distress
Summary
Abstrak: Jika Perusahaan dapat melaksanakan praktek yang baik, maka dapat melindungi perusahaan terhadap resiko kebangkrutan. Variabel-variabel yang digunakan dalam penelitian ini adalah corporate governance, kinerja perusahaan, financial distress, leverage, current ratio, book to market ratio, return on sales, firm size, capital intensity, institutional ownership, ownership concentration, dan ownership type. Berdasarkan hasil analisis pada Tabel 3, dengan probabilitas sebesar 0,0002 < 0,05 dan koefisien sebesar -0.198464 maka menunjukkan bahwa terdapat pengaruh negatif antara book to market ratio terhadap kinerja perusahaan.
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