The impact of managerial ownership, institutional ownership, proportion of independent commissioner, and intellectual capital on financial distress
Journal Title: Journal of Economics, Business, & Accountancy Ventura - Year 2018, Vol 21, Issue 3
Abstract
Financial distress is a phase of the decline in the financial condition experienced by a company before the bankruptcy or liquidation occurs. One of the causes of financial distress is the company’s operating losses, caused its operating cash flow to be nega-tive. During 2014-2016, there was 24 percent of manufacturing companies listed in Indonesia Stock Exchange (BEI) that has a negative pre-tax profit. The purpose of this study was to obtain empirical evidence of the effect of managerial ownership, institu-tional ownership, the proportion of independent commissioner board, and intellectual capital on financial distress. The population of this research is all of manufacturing companies listed on Indonesian Stock Exchange (IDX) on 2014-2016. The sample was taken using a non-probability sampling with a saturated sample technique. The num-bers of samples analyzed were 423 financial reports of manufacturing companies pub-lished on IDX during 2014--2016. The analysis technique used in this research is multinomial logistic regression. It was found that managerial ownership has a nega-tive effect on financial distress, institutional ownership has a negative effect on finan-cial distress, proportion of independent commissioner has a positive effect on financial distress, and intellectual capital has a negative effect on financial distress.
Authors and Affiliations
I Kadek Widhiadnyana, Ni Made Dwi Ratnadi
Keywords
Related Articles
- EP ID EP545802
- DOI 10.14414/jebav.v21i3.1233
- Views 79
- Downloads 0
Do investors become risk takers after receiving MLA and accounting information?
This study aimed to find out, empirically, the effect of myopic loss aversion and accounting information on the behavior of investors. The method used is pure experiment by using a 2×2 factorial design between subjects....
The strategy of tourism village development in the hinterland Mount Bromo, East Java
This study aims to find an effective strategy in the development of Hinterland Tourism Village in Mount Bromo area. It is a descriptive explanatory research to build a model of grand design for rural tourism development....
Halo Effect in Subjective Performance Evaluation Bias
This study aimed not only to examine the effect of the objective measure and controllability on subjective performance evaluation but also to prove empirically the halo effect phenomenon which is present in the evaluatio...
Ethics and performance: Understanding the psychological contract of the taxation from the view of the employee tax
There is a phenomenon related to the dysfunctional behavior of unscrupulous tax officials and the reluctant of taxpayers to pay the tax. This study aims to explore the evidence of psychological tax contract in a tax offi...
The effect of employment, economic growth, and investment on HDI: In provinces in Indonesia
This study aims to analyze the effect of Number of Working People (Employment), Economic Growth Rate (EGR), and Investment on Human Development Index (HDI) in Indonesia, partially and simultaneously. This study used inve...