THE INFLUENCE OF GOOD CORPORATE GOVERNANCE, INTANGIBLE ASSETS, AND SALES GROWTH ON FINANCIAL DISTRESS IN MANUFACTURING FIRMS LISTED ON THE INDONESIA STOCK EXCHANGE DURING THE 2022–2024 PERIOD
Main Article Content
Muhammad Daffa Zulfikar
Della Andriyani Ridwan
Efrina Surya Eningsih Silalahi
This study investigates the determinants of financial distress in companies, emphasizing the roles of good corporate governance, intangible assets, sales growth, leverage, and liquidity. The research aims to provide empirical evidence on how these variables influence a firm’s likelihood of experiencing financial difficulties. A quantitative research approach was adopted, utilizing secondary data from annual reports of publicly listed companies over a defined observation period. Multiple regression analysis was applied to test the hypotheses, supported by classical assumption tests to ensure model validity. The results reveal that the size of the board of directors, the size of the board of commissioners, the presence of an effective audit committee, and managerial ownership significantly contribute to reducing financial distress. Sales growth was also found to have a positive effect on financial stability by strengthening operational performance and debt repayment capacity. Conversely, intangible assets showed no significant impact, while leverage exhibited a negative effect, indicating that debt structure management plays a critical role in distress prevention. Liquidity positively affected the ability to meet short-term obligations, reinforcing its importance in maintaining financial health. Overall, the findings highlight the interplay between governance mechanisms, operational growth, and financial structure in mitigating financial distress.
Abebe Zelalem, B., & Ali Abebe, A. (2022). Does intangible assets affect the financial performance and policy of commercial banks’ in the emerging market?. PloS one, 17(8), e0272018. https://doi.org/10.1371/journal.pone.0272018
Arief, H., Oktaviar, C., Saratian, E. T. P., & Soelton, M. (2023). The influence of sales growth, profitability and activity on financial distress. journal neolectura. 4(1), 157-164 DOI: https://doi.org/10.37010/jdc.v4i1.1277
Farooq, M., Noor, A., Qureshi, S. F., & Bhutta, Z. M. (2021). Indirect financial distress costs in non-financial firms: evidence from an emerging market. Pacific Accounting Review, 33(4), 417-434. https://doi.org/10.1108/PAR-09-2020-0127
Ionita, C., & Dinu, E. (2021). The effect of intangible assets on sustainable growth and firm value–Evidence on intellectual capital investment in companies listed on Bucharest Stock Exchange. Kybernetes, 50(10), 2823-2849. https://doi.org/10.1108/K-05-2020-0325
Muslimin, D. W., & Bahri, S. (2023). Pengaruh Gcg, Ukuran Perusahaan, Dan Sales Growth Terhadap Financial Distress. Owner: Riset dan Jurnal Akuntansi, 7(1), 293-301. DOI: 10.33395/owner.v7i1.1249
Nurcahyono, N., Sinarasri, A., Pamungkas, I. D., & Hanum, A. N. (2025). May intellectual capital and corporate governance reduce the probability of financial distress?. Contaduria y Administracion, 70(1), 1-25. http://dx.doi.org/10.22201/fca.24488410e.2025.5169
Panigoro, N., Nainggolan, C. D., Hartono, A., & Alamsyahbana, M. I. (2023). The Influence of Good Corporate Governance and Sales Growth Against Financial Distress. Aksara: Jurnal Ilmu Pendidikan Nonformal, 9(3), 1859-1870. DOI:http://dx.doi.org/10.37905/aksara.9.3.1859-1870.2023
Tanjung, I. I., Hendrian, H., & Geraldina, I. (2023). The Effect of Intellectual Capital and Good Corporate Governance (GCG) on Firm Value With Financial Distress As Intervening Variable. SAR (Soedirman Accounting Review): Journal of Accounting and Business, 8(1), 103-118. DOI: https://doi.org/10.32424/1.sar.2023.8.1.8465
Wangsih, I. C., Yanti, D. R., Yohana, Y., Kalbuana, N., & Cahyadi, C. I. (2021). Influence of leverage, firm size, and sales growth on financial distress. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(4). DOI: https://doi.org/10.29040/ijebar.v5i4.3563
Younas, N., UdDin, S., Awan, T., & Khan, M. Y. (2021). Corporate governance and financial distress: Asian emerging market perspective. Corporate Governance: The International Journal of Business in Society, 21(4), 702-715. https://doi.org/10.1108/CG-04-2020-0119
