Corporate Governance, Financial Ratios, Political Risk and Financial Distress: A Survival Analysis
Year: 2017
Type: article
Abstract: Objective - The objective of this study was to investigate the factors like corporate governance, financial ratios, and political risk and their impacts on company's survival. Methodology/Technique - Collecting data of Indonesian Stock Exchange from 2000 to 2014 and employing purposive random sampling, this research collects samples of 58 companies undergoing financial distress and 275 others which do not. Findings - The research eventually proves that agency theory and Asymmetric Information theory do occur in Indonesia. With Cox Proportional Hazard model, it then proves that all two models employed: independence commissioners, leverage, operating risk, size, return on asset and control of corruption, are variables which consistently affect financial distress of the company. Novelty - The study uses original data and gives supported suggestion for the researched issues. Type of Paper: Empirical Keywords: Financial Distress; Financial Ratios; Corporate Governance; Political Risk. JEL Classification: G01,G34, M48
Authors: Farida Titik Kristanti, Aldrin Herwany
Institutions: Telkom University, Padjadjaran University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2743719923