THE EFFECT OF SHAREHOLDING STRUCTURE, AUDIT COMMITTEE, AND PROFITABILITY ON FINANCIAL DISTRESS (Empirical Study on Manufacturing Companies in the Consumer Goods Industry Sector Listed on the Indonesia Stock Exchange in 2016 – 2020)

Abstract

 

This study aims to analyze and provide empirical evidence of the effect of share ownership, audit committee and profitability on financial distress in manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange for the 2016-2020 period. This type of research is quantitative with an associative approach. Samples were taken using purposive sampling method and obtained as many as 16 companies. The data analysis technique used is logistic regression analysis, with data processing using eviews 11. The results show that managerial stock ownership has no significant effect on financial distress and institutional stock ownership has no significant effect on financial distress. Meanwhile, the audit committee has a significant negative effect on financial distress, profitability has a significant negative effect on financial distress and managerial share ownership, institutional share ownership, audit committee, profitability simultaneously has a significant positive effect on financial distress

Keywords : Share Ownership Structure, Audit Committee, Profitability, Financial Distress