PENGARUH KARAKTERISTIK DEWAN DAN KOMITE AUDIT TERHADAP FINANCIAL DISTRESS

Abstract

Financial distress is important aspect that have to be monitored in a companies. This condition can create attention for companies to think that are harmful to that stockholders and other stakeholders. Therefore, financial distress is attracting the attention of practitioner and academician. However, there still limited study on this subject. The purpose of this research is to examine the effect of board and audit committee characteristics on financial distress. Agency theory and resource dependence theory are used to understand the phenomena of financial distress. Political link companies used to be on object of the study with final sample 17 companies for 5 years period. Using logistic regression analysis, we found that there is no hypothesis variables affecting the financial distress. Out of four control variables, profitability and company size are  significantly associated with financial distress. To conclude there is no role of board and audit committee characteristics on the financial distress which mean that the implementation of corporate governance in indonesia is still in effective.

 

Keywords : Financial Distress, Board Characteristics, Audit Committee