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
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- EP ID EP545802
- DOI 10.14414/jebav.v21i3.1233
- Views 55
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