Abstract
This study aims to examine the effect of Corporate Governance Structure (CG) and Corporate Social Responsibility (CSR) on Financial Difficulties. The contribution of this research is to explore the truth of CG goals and achieve quality CSR reporting and can provide solutions to conditions before and when companies experience financial difficulties and provide things that are considered important to anticipate the possibility of financial difficulties. CG in this study uses the size of the audit committee and independent commissioners, then CSR is measured by the quality of CSR disclosure. The data analysis method used is multiple linear regression. The results of this study are the audit committee has no effect on financial difficulties but the independent commissioner has a negative effect on financial difficulties. The contribution of the proportion of independent directors apparently contributed more to the proportion of the number of audit committees. The proportion of the audit committee is not able to minimize or even be a solutive effect on the financial difficulties of companies in Indonesia. The audit committee is a form of responsibility for compliance with government regulations only. The test results also support the influence of CSR on financial difficulties assuming that the quality of CSR disclosure has a significant negative effect on corporate financial difficulties. Disclosure and implementation of CSR activities can have an effect to minimize if in the future the company experiences financial difficulties, the guarantee of funds will remain well distributed so as to minimize the financial difficulties experienced by the company
Highlights
IntroductionFinancial difficulties as a condition where the company's finances are in an unhealthy state, or a crisis that occurred before bankruptcy
Problems of financial difficulties often occur in both large and small companies
Descriptive statistics This study examines the relationship of corporate governance (CG) and corporate social responsibility (CSR) in minimizing or preventing financial difficulties
Summary
Financial difficulties as a condition where the company's finances are in an unhealthy state, or a crisis that occurred before bankruptcy. Some examples of companies in Indonesia experiencing financial difficulties such as PT. Asuransi Jiwasraya who is experiencing financial difficulties so that it results in late payment of the policy due (source: anonymous, www.cnbindonesia.com). This state-owned steel company is repeatedly troubled by problems. Garuda Indonesia Persero Tbk, which was recently highlighted by aviation public because it suffered losses of up to Rp. 2.45 trillion which shows the financial difficulties at this company (Mufti, 2019)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
