The Effect of Audit Committee Size, Independent Commissioner Size, and Shareholder Equity Ratio on Financial Distress Avoidance: A Study on Public Companies in Manufacturing Sector Listed in IDX During 2015-2017

DOI

10.2991/aebmr.k.210507.064How to use a DOI?

Keywords

Audit Committee, Independent Commissioner, Shareholder Equity Ratio, Financial Distress Avoidance

Abstract

This study aimed to reveal the effect of Audit Committee size, Independent Commissioner size, and Shareholder Equity Ratio on Financial Distress Avoidance. In this study, Audit Committee size, Independent Commissioner size, Shareholder Equity (SHE) Ratio, and Financial Distress were measured by using the Altman Z-Score Model. The research subjects were public companies listed in Indonesia Stock Exchange (IDX) during 2015-2017. These samples were selected by using the purposive sampling method and the secondary data was analyzed by using multiple regression method, and finally there were 19 companies that met the requirements. As research result, the Audit Committee effectiveness as proxied by Audit Committee size and the number of Independent Commissioner do not positively affect financial distress avoidance. Meanwhile, the SHE ratio positively and significantly affect financial distress avoidance.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Michelle Kristian
AU  - Halim Putera Siswanto
PY  - 2021
DA  - 2021/05/09
TI  - The Effect of Audit Committee Size, Independent Commissioner Size, and Shareholder Equity Ratio on Financial Distress Avoidance: A Study on Public Companies in Manufacturing Sector Listed in IDX During 2015-2017
BT  - Proceedings of the Ninth International Conference on Entrepreneurship and Business Management (ICEBM 2020)
PB  - Atlantis Press
SP  - 428
EP  - 435
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210507.064
DO  - 10.2991/aebmr.k.210507.064
ID  - Kristian2021
ER  -