ANALISIS PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP KONDISI FINANCIAL DISTRESS DENGAN KUALITAS AUDIT SEBAGAI VARIABEL MODERATING (STUDI EMPIRIS PADA PERUSAHAAN PROPERTI DAN REAL ESTATE YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2011-2014)

Abstract

The financial distress of a company become a strategic issue due to this condition can bring to the bankruptcy. Several study has been conducted by previous researches. However, study using property and real estate companies in Indonesia is still limited. Therefore, there is a desire need to forthere investigate this phenomena. The purpose of this study is to analyze the effect of corporate governance mechanism on financial distress. Corporate governance mechanism is categorised into five variables: managerial ownership, institutional ownership, director size, board size, and independent board. The pupolation in this study are all of the property and real estate companies listed in Indonesia Stock Exchange for the year 2011-2014. Secondary data is applied from the company’s annual report retracting from www.idx.co.id. Final sample in this study are 35 companies which obtained by using purposive sampling method. The data is analyzed by using logistic regression model. The results of this study showed that the board size have a significant negatively effect on financial distress. Meanwhile, the four other variables have no effect on financial distress. Besides, this study also reveal that audit quality is able to weaken the relationship between managerial ownership on financial distress. But audit quality is unable to moderate the relationship between four other variables on financial distress.

Keywords: Financial Distress, Corporate Governance, Audit Quality