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What Determine the Financial Distress of Indonesian Companies during the COVID-19 Pandemic?
Abstract
This study is aimed to examine the influence of foreign ownership, CEO profile (tenure, age, and educational background) and leverage on financial distress. Stratified random sampling technique was adopted to select samples of Indonesian multi-sector companies listed on Indonesia Stock Exchange (IDX) in 2020. Data were collected from the companies’ annual reports of 243 sample companies. Using multiple linear regression analysis, this study found that foreign ownership, CEO profile, and leverage have influence on the companies’ financial distress during the pandemic period. Except leverage, all determinants have positive influence of financial distress.
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DOI: https://doi.org/10.26905/afr.v6i2.9989
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