The Effect of Cash Flow, Board Independence, and Company Size on Financial Distress

Pandapotan, Fransisco; Puspitasari, Fitria

doi:10.36348/sjef.2022.v06i09.003

Cited by 6 publications

(5 citation statements)

References 9 publications

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“…This accords perfectly with our a priori expectation of a positive relationship between board independence and conservative reporting based on theoretical underpinning that the independence of a board of directors positively influences the extent to which policy matters are handled without undue influences and biases from persons internal to the organization. Since the independence of the board is influenced by its composition, it has been advocated that non-executive directors should be in the majority in other to enhance its independence (Fransisco & Fitria, 2022). Consistent with the findings of this study.…”

Section: Board Independence and Accounting Conservatismsupporting

confidence: 90%

Corporate Governance Mechanism and Accounting Conservation of Listed Manufacturing Companies in Nigeria

Ukpong,

Abuaja,

Ukpe

2023

EJEFR

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This study assessed the relationship between Corporate Governance Mechanism (CGM) and Accounting conservation of selected listed companies in Nigeria. The study adopted an expo-facto research design. The population of the study was 57 companies listed on the Nigeria Exchange group. The sample was determined using Taro Yamane formula which gave a sample size of 25 companies. The study covered the period 2007 to 2021 financial year. The study used secondary data. The data were analyzed using descriptive statistics and linear regression analysis. The result of the analysis shows that the effect of Board Size on the accounting conservatism of listed manufacturing firms in Nigeria is statistically significant. Board independence has a significant influence on the accounting conservatism of listed manufacturing firms in Nigeria. It was recommended that companies should avoid small board sizes and target maintaining the optimal number of members on their boards consistent with governance codes of practice. Evidence from this study shows that large board size has significant positive trade-off on accounting quality and conservatism.JEL: M14, M40, M41, M42, M49 Article visualizations:<img src="/-counters-/soc/0017/a.php" alt="Hit counter" />

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Section: Board Independence and Accounting Conservatismsupporting

confidence: 90%

Corporate Governance Mechanism and Accounting Conservation of Listed Manufacturing Companies in Nigeria

Ukpong,

Abuaja,

Ukpe

2023

EJEFR

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“…Thus, it resulted in ineffective and inefficient operational activities. This conclusion was in line with Permana & Umiyati (2022) and Ombaba & Kosgei (2017) which stated that financial distress was influenced by board size.…”

Section: Influence Of Board Size On Financial Distresssupporting

confidence: 89%

Corporate Governance and Financial Ratios of Manufacturing Companies on Financial Distress: The Main Board and Development Board of IDX

Adielyani

Pangestuti

2023

mem

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Financial distress is a condition where a company is unable to meet its obligations when they directed to bankruptcy. The purpose of this study was to analyze influence of corporate governance, profitability, liquidity, leverage and earning growth on financial distress. Research sample data used in this study were manufacturing companies listed on the main board and development board on the Indonesia Stock Exchange in 2016-2020. Logistic regression analysis had been applied to analyze data of study. The results show that the factors that influence Financial Distress in manufacturing companies on the main board and development board were different. For manufacturing companies on main board, influencing factors of financial distress were independent audit committee, liquidity, leverage, and earning growth. Meanwhile, board size, profitability, liquidity, leverage and earning growth were influencing factors of financial distress for manufacturing companies on development board.

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“…This means that companies that generate cash positively are able to fulfill obligations on debt and guarantee company operations, and of course can avoid financial distress. Meanwhile, according to research (Nasution, 2019), and (Pandapotan & Puspitasari, 2022b)revealed a positive effect of cash flow on financial distress significantly.…”

Section: Cash Flow On Financial Distressmentioning

confidence: 95%

The Effect of Cash Flow and CSR Moderated by Corporate Governance

Wardana,

Mutyarawati,

Purwidyasari

et al. 2023

J. Keuang. dan Perbank.

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This study analyzes and examines the effect that cash flow has on financial distress and corporate social responsibility through moderation by the role of corporate governance. The sample of companies applied is manufacturing companies in Indonesia and listed on the Indonesia Stock Exchange with the period 2019-2021. The samples that fit the criteria were found to be 44 companies. The data obtained through purposive sampling and using secondary data from the annual report published by each company. The results of this study indicate that financial distress t-1 has a positive effect on financial distress significantly. corporate social responsibility does not affect financial distress. Corporate governance has a positive effect on financial distress significantly. Cash flow has a negative and significant effect on financial distress. Leverage has a negative and significant effect on financial distress. Asset tangibility does not affect financial distress. Corporate governance moderates the effect of corporate social responsibility on financial distress.DOI: 10.26905/jkdp.v27i4.10685

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The Effect of Cash Flow, Board Independence, and Company Size on Financial Distress

Cited by 6 publications

References 9 publications

Corporate Governance Mechanism and Accounting Conservation of Listed Manufacturing Companies in Nigeria

Corporate Governance Mechanism and Accounting Conservation of Listed Manufacturing Companies in Nigeria

Corporate Governance and Financial Ratios of Manufacturing Companies on Financial Distress: The Main Board and Development Board of IDX

The Effect of Cash Flow and CSR Moderated by Corporate Governance

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