The Role of Financial Performance in Mediating The Effect of Good Corporate Governance on Financial Distress

Ratieh Widhiastuti; Ahmad Nurkhin; Nurdian Susilowati

doi:10.21831/economia.v15i1.22927

The Role of Financial Performance in Mediating The Effect of Good Corporate Governance on Financial Distress

Ratieh Widhiastuti, Universitas Negeri Semarang, Indonesia
Ahmad Nurkhin, Universitas Negeri Semarang, Indonesia
Nurdian Susilowati, Universitas Negeri Semarang, Indonesia

10.21831/economia.v15i1.22927

Abstract

Abstract

This research aims to study the effect of good corporate governance on financial distress directly and mediated by financial performance. The study population was a manufacturing company listed on the Indonesia Stock Exchange (IDX) in 2016. The study sample was determined using the purposive sampling method, which produced 137 companies that met the requirements. The research data uses secondary data in the form of financial statements and annual reports of manufacturing companies obtained through the Indonesia Stock Exchange website. The analytical tool to test the research hypothesis is Analysis of Moment Structures (AMOS). The results of the study show that there is no direct and indirect impact on corporate governance to financial difficulties; while financial performance has a negative impact on financial difficulties.

Keywords: Financial Performance, Good Corporate Governance, Financial Distress

Peran Financial Performance dalam Memediasi Pengaruh Good Corporate Governance Terhadap Financial Distress

Abstrak

Tujuan penelitian ini adalah untuk mengetahui pengaruh good corporate governance terhadap financial distress baik secara langsung maupun dengan dimediasi oleh financial performance. Populasi penelitian adalah perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) pada tahun 2016. Sampel penelitian ditentukan dengan menggunakan metode purposive sampling, yang menghasilkan 137 perusahaan yang memenuhi syarat. Data penelitian menggunakan data sekunder berupa laporan keuangan dan annual report perusahaan manufaktur yang diperoleh melalui website Indonesia Stock Exchange. Alat analisis untuk menguji hipotesis penelitian yaitu Analysis of Moment Structures (AMOS). Hasil penelitian menunjukkan good corporate governance tidak berpengaruh baik secara langsung maupun tidak langsung terhadap financial distress; sedangkan financial performance berpengaruh negatif signifikan terhadap financial distress.

Kata kunci: Financial Performance, Good Corporate Governance, Financial Distress

Keywords

Financial Distress; Financial Performance; Good Corporate

Full Text:

PDF

References

Afriyeni, E. (2012). Model Prediksi Financial Distress Perusahaan. Polibisnis, 4(2), 1-10.

Al-Tamimi, H. A. H. (2012). The effects of corporate governance on performance and financial distress: The experience of UAE national banks. Journal of Financial Regulation and Compliance, 2, 169-181. doi: https://doi.org/10.1108/13581981211218315

Altman, E. I. (1968). Financial Ratio, Discriminant Analysis, and The Prediction of Corporate Bankruptcy. The Journal of Finance, 23(4), 589-609.

Azwar, A. (2015). MODEL PREDIKSI FINANCIAL DISTRESS DENGAN BINARY LOGIT (STUDI KASUS EMITEN JAKARTA ISLAMIC INDEX). Jurnal Badan Pendidikan dan Pelatihan Keuangan, 8(1), 21-40.

Beaver, W. H., Correia, M., & McNichols, M. F. (2011). Financial Statement Analysis and The Prediction of Financial Distress (Vol. 5). North America: Now Publisher Inc.

Brennan, N. (2006). Board of Directors and Firm Performance: Is There an Expectation Gap? Corporate Governance: An International Review, 14(6), 577-593.

Ellen, & Juniarti. (2013). Penerapan Good Corporate Governance, Dampaknya Terhadap Prediksi Financial Distress pada Sektor Aneka Industri dan Barang Konsumsi. Business Accounting Review, 1(2), 1-13.

Fathonah, A. N. (2016). Pengaruh Penerapan Good Corporate Governance Terhadap Finacial Distress. Jurnal Ilmiah Akuntansi, 1(2), 133-150.

Fatmawati, A., & Wahidahwati. (2017). Faktor-faktor yang Mempengaruhi Financial Distress (Studi Pada Perusahaan Manufaktur di BEI). Jurnal Ilmu & Riset Akuntansi, 6(10), 1-17.

Geng, R., Bose, I., & Chen, X. (2014). Predicition of Financial Distress: An Empirical Study of Listed Chinese Companies Using Data Mining. European Journal of Operational Research, 241(1), 236-247. doi: http://dx.doi.org/10.1016/j.ejor.2014.08.016

Hu, D., & Zheng, H. (2015). Does Ownership Structure Affect the Degree of Corporate Financial Distress in China? Journal of Accounting in Emerging Economics, 5(1), 35-50.

Huang, C.-J. (2010). Board, Ownership and Perfomance of Banks with a Dual Board System: Evidence from Taiwan. Journal of Management & Organization, 6(2), 219-234. doi: https://doi.org/10.1017/S1833367200002145

Kumar, N., & Singh, J. P. (2012). Outside Directors, Corporate Governance and Firm Performance: Empirical Evidence from India. Asian Journal of Finance & Accounting, 4(2), 39-55. doi: URL: http://dx.doi.org/10.5296/ajfa.v4i2.1737

Kusanti, O. (2015). Pengaruh Good Corporate Governance dan Rasio Keuangan Terhadap Financial Distress. Jurnal Ilmu & Riset Akuntansi, 4(10), 1-22.

Mafiroh, A., & Triyono. (2016). Pengaruh Kinerja Keuangan dan Mekanisme Corporate Governance Terhadap Financial Distress (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2011-2014). Riset Akuntansi dan Keuangan Indonesia, 1(1), 46-53.

Manzaneque, M., Priego, A. M., & Merino, E. (2016). Corporate Governance Effect on Financial Distress Likelihood: Evidence from Spain. Revista de Contabilidad, 19(1), 111-121. doi: https://doi.org/10.1016/j.rcsar.2015.04.001

Omran, M., Fatheldin, A., & Bolbol, A. (2008). Corporate Governance and Firm Performance in Arab Equity Markets. International Review of Lawa and Economis, 28(1), 32-45. doi: DOI: 10.1016/j.irle.2007.12.001

Riyanto, B. (2011). Dasar-dasar Pembelanjaan Perusahaan. Yogyakarta: BPFE.

Shahwan, T. M. (2015). The Effects of Corporate Governance on Financial Performance and Financial Distress:

Evidence from Egypt. Corporate Governance, 15(5), 641-662. doi: https://doi.org/10.1108/CG-11-2014-0140

Srivastava, N. K. (2015). Does governance structure have any effect on firm performance during the financial crisis: Evidence from selected Indian companies. Journal of Strategy and Management, 8(4), 368-383. doi: https://doi.org/10.1108/JSMA-02-2015-0014

Ufo, A. (2015). Impact of Financial Distress on the Leverage of Selected Manufacturing Firms of Ethiopia. Industrial Engineering Letters, 5(10), 6-11.

Varshney, P., Kaul, V. K., & Vasal, V. K. (2012). Corporate Governance Index and Firm Performance: Empirical Evidence from India.

Wang, Z., & Li, H. (2007). Financial distress prediction of Chinese listed companies: a rough set methodology. Chinese Management Studies, 1(2), 93-110. doi: https://doi.org/10.1108/17506140710758008

Wei, D. W., & Jimin, L. (2011). An Empirical Study on The Corporate Financial Distress Prediction Based on Logistic Model: Evidence from China's Manufacturing Industry. International Journal of Digital Content Technology and Its Applications, 5(6), 368-379.

Yi, W. (2012). Z-score Model on Financial Crisis Early-Warning of Listed Real Estate Companies in China: a Financial Engineering Perspective. Systems Engineering Procedia, 3(2012), 153-157. doi: https://doi.org/10.1016/j.sepro.2011.11.021

Zheng, D. H. H. (2015). Does ownership structure affect the degree of corporate financial distress in China? Journal of Accounting in Emerging Economics, 5(1), 35-50. doi: DOI 10.1108/JAEE-09-2011-0037

DOI: https://doi.org/10.21831/economia.v15i1.22927