The Effect Of Good Corporate Governance And Leverage On Financial Distress With Operating Cash Flow And Firm Size As Control Variables (Empirical Study On Regional Development Bank Listed On Financial Services Authority In Indonesia Year 2017-2021)

Abstract

This study aims to find out the effect of good corporate governance (GCG) and leverage towards financial distress. The type of this study is an empirical study that was conducted on regional development banks in Indonesia. The sample in this study were 25 regional development banks listed on Financial Services Authority that published annual reports for the period of 2017-2021. The method used to take the sample was purposive sampling. This study used descriptive statistical tests, classical assumption tests, normality test, multicollinearity test, heteroscedasticity test, autocorrelation test, multiple regression test and hypothesis test with IBM SPSS Statistics 26. The results of this study show that managerial ownership, institutional ownership, size of the board of directors, and leverage have a positive effect on financial distress, while size of the directors has a negative effect on financial distress.