The effect of liquidity and leverage on financial distress with good corporate governance as a moderating variable in the manufacturing sector on the Indonesian Stock Exchange 2019-2021

Siti Aisyah

Abstract


This study aims to determine the effect of liquidity and leverage on financial distress with good corporate governance as moderating. This type of research is quantitative research. The population in this study includes all manufacture companies. The sample in this study amounted to 43 companies. The sampling method used in this study was purposive sampling, while the data processing method used in this study was moderate regression analysis. The results showed that liquidity had a significant negative effect on financial distress. While leverage has a significant positive effect on financial distress. Good Corporate Governance as a moderating variable is able to strengthen the influence of the dependent variable on the independent variables in this study.

Keywords


Liquidity, Leverage, Good Corporate Governance, Financial Distress

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DOI: http://dx.doi.org/10.31258/ijeba.8.2.169-180

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