Management restructuring on distress firm in Indonesia

2021 ◽  
Vol 1 (3) ◽  
pp. 137-146
Author(s):  
Sri Dwi Ari Ambarwati ◽  
ST Haryono
Keyword(s):  
Ownership Structure ◽  
Financial Distress ◽  
Institutional Ownership ◽  
Manufacturing Companies ◽  
Cross Section Data ◽  
Management Turnover ◽  
Insider Ownership ◽  
Section Data ◽  
Restructuring Strategy ◽  
Management Changes

Companies experiencing financial distress will try to solve these problems with various improvement efforts. One of the efforts that can be done is to carry out management restructuring, namely management changes. This study focuses on the management restructuring strategy on manufacturing companies that experience a decrease in performance, with the proportion of Earning Before Interest and Tax which decreased for two or more consecutive years period 2010 to 2020. The reason for taking this period is to capture the period after the 1997 crisis until the occurrence of global crisis in 2008. This study aims to examine the effect of ownership structure in choosing management turnover restructuring. The data used is cross-section data and processed using logistic regression with Stata. The results of this research simultaneously show that insider ownership, institutional ownership, family ownership, and corporate characteristic variables have an impact on the management restructuring decision. This study proves that the ownership structure mechanism affects the choice of management restructuring in distressed companies in Indonesia.

scholarly journals Determinant of The Corporate Social Responsibility Disclosure

ETIKONOMI ◽  
2017 ◽  
Vol 16 (2) ◽  
pp. 161-172
Author(s):  
Uun Sunarsih ◽  
N. Nurhikmah
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Multiple Regression Analysis ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Manufacturing Companies ◽  
Csr Disclosure ◽  
Corporate Social

Corporate Social Responsibility (CSR) has a very important role for the company and now become an obligation for every company. The purpose of this study examined the effect of institutional ownership, board of commissioners, profitability and size on CSR disclosure. This research conducted at mining manufacturing companies listed in Indonesia Stock Exchange period 2013-2014 and obtained 76 sample companies. The method used is multiple regression analysis. The result showed only institutional ownership affecting CSR disclosure. This suggests institutional ownership structure can act in monitoring the company. Independent board has not effected on CSR, it failed to monitor the actions of top management. Profitability has not effected on the disclosure of CSR, it enabled the company to have two perspectives on CSR. The most companies view CSR as a deduction from earnings. CSR disclosure has not affect the size of the CSR disclosure area.DOI: 10.15408/etk.v16i2.5236

scholarly journals The Effect of Ownership Structure, Profitability, Firm Size and Tangibility on Capital Structure

2018 ◽  
Vol 7 (4) ◽  
pp. 494-505
Author(s):  
Tika Iswarini ◽  
Anindya Ardiansari
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Ownership Structure ◽  
Financial Management ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Company Value ◽  
Optimal Value

The important decision faced by financial management which relates to the continuity of company operations is funding decision which is capital structure. Capital structure achieves optimal value if the composition of debt and capital are able to increase company value. The purpose of this research is to examine the effect of ownership structure, profitability, firm size, and tangibility against capital structure (research on manufacturing companies listed on Indonesia Stock Exchange period 2012-2016). The population in this research were all manufacturing companies listed on the Indonesia Stock Exchange 2012-2016. This research used purposive sampling method with certain criteria to determine the sample. The sample used was 38 companies with the research period 2012-2016 at manufacturing companies listed on the Indonesia Stock Exchange. Multiple regression analysis using Eviews 8 was used to analyze the data. The result of multiple linear regression test showed that there were three independent variables that affect capital structure they were managerial ownership, firm size and tangibility. Whereas institutional ownership and profitability did not affect the capital structure of manufacturing companies in 2012-2016. The conclusion of this research is managerial ownership, firm size and tangibility have positive and significant effect on capital structure, while institutional ownership and profitability have negative and insignificant effect on capital structure.

scholarly journals Conservatism Determinants: Evidence from Indonesia Manufacturing Sector

2019 ◽  
Author(s):  
Muhammad Tesar ◽  
Lidiyawati .
Keyword(s):  
Ownership Structure ◽  
Financial Distress ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Institutional Ownership ◽  
Financial Statements ◽  
Accounting Conservatism ◽  
Managerial Ownership ◽  
Regression Methods ◽  
Industry Sector

Accounting conservatism lead the preparation of financial statements which in the act of recognize cost or loss estimates, but do not immediately recognise future revenues or profits even though the probability of occurrence is large. This study aims to measure the factors that encourage companies to apply the principle of conservatism in the manufacturing industry sector with regression methods. Then it was found that; managerial ownership structure, institutional ownership structure, financial distress, and company size simultaneously and partially do not have a significant influence on the application of the principle of accounting conservatism. The existence of asymmetry information on financial statements has thought to have an impact on the difficultyofmeasuringthebasisofconservatismactions,as well as the determinants of factors beyond observation. Therefore, it was expected that the process of presenting financialstatementscouldreflectmanagementperformanceindependentlyinorderto provide information according to its occurrence

scholarly journals Influence analysis of ownership structure on manufacturing company's performance in Indonesia 2012 - 2013

2019 ◽  
Vol 4 (2) ◽  
pp. 47
Author(s):  
Darwin Marasi Purba ◽  
Jhon Herlan Sianturi
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Control Variable ◽  
Institutional Ownership ◽  
Foreign Ownership ◽  
Manufacturing Companies ◽  
Analysis Model ◽  
Return On Assets ◽  
A Company

The purpose of this study is to analyse the effect of ownership structure on profitability in the manufacturing sector listed in Indonesia Stock Exchange (BEI). Independent variables used for this study consist of institutional ownership, foreign ownership, and pubic ownership. Profitability is measured by ROA (Return On Assets). While leverage as firm size is used as the control variable. This research uses secondary data, namely the annual financial statements of listed manufacturing companies in Indonesia Stock Exchange for the years 2012, and 2013. The sampling method used was purposive sampling and data analysis model used was multiple regression analysis. Results from this study indicate that institutional ownership in a company has a positive and significant effect on firm performance. Meanwhile, the foreign ownership and public ownership has no a positive effect on firm perforrmance in a company. Keyword: Ownership structure, Return on assets (ROA), Firm performance.

scholarly journals ANALISIS RASIO KEUANGAN TERHADAP FINANCIAL DISTRESS DENGAN STRUKTUR KEPEMILIKAN SEBAGAI VARIABEL MODERASI

2020 ◽  
Vol 8 (2) ◽  
Author(s):  
Felicia Komala ◽  
Yustina Triyani
Keyword(s):  
Ownership Structure ◽  
Financial Distress ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Institutional Ownership ◽  
Sufficient Evidence ◽  
Financial Ratio ◽  
Financial Condition ◽  
Financial Ratio Analysis ◽  
Steep Decrease

Financial distress is a steep decrease in the company's financial condition before the company went bankrupt. Financial distress can be analyzed through financial ratios and the ownership structure of the company. This study used logistic regression analysis. The sampling technique is non-probability sampling using a purposive sampling method. The study sample consisted of 70 companies on the Stock Exchange from the 2015-2017 period. Based on regression, Grover, the Springate model showed that the model can predict the value of observation. The results indicate there is sufficient evidence that tends to leverage positively affects both financial distress with Grover and Springate model, a firm's growth tends to negatively affect financial distress with the Springate model, and institutional ownership tends to weaken the influence of leverage to financial distress with Springate model. On the other hand, there is not enough evidence that the firm's growth tends to negatively affect the financial distress with the Grover model. Managerial ownership does not affect moderate leverage and growth of the firm towards better financial distress with the Grover and Springate model. Institutional ownership does not affect moderating leverage of financial distress relationship with the Grover model. Institutional ownership does not affect the firm's growth to moderate the relationship financial distress with Grover or Springate model.Keywords: Financial ratio analysis, Ownership structure, Financial distress

scholarly journals Financial Distress, Tax Loss Carried Forward, Corporate Governance and Tax Avoidance

2020 ◽  
Vol 11 (1) ◽  
pp. 54-54
Author(s):  
Mayang Sekar Pembayun Khamisan ◽  
Silvy Christina ◽  
Silvy Christina
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Financial Distress ◽  
Audit Committee ◽  
Audit Quality ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Tax Loss

One of the biggest state's income is tax. In Indonesia, almost all activities carried out by the public are taxable, for example; grocery for daily activities, electronic equipment purchased, and employee income tax. Taxes have a very important role on state revenue because of taxes were main sources in contributing funds used to finance government spending and national development, but for the tax company is a burden that reduces the company's net profit, so the company will try to reduce the tax burden. To control the amount of tax payments is through tax avoidance, known as tax avoidance which is part of tax planning. Therefore this study aims to determine the effect of financial distress, loss compensation, institutional ownership, managerial ownership, audit committee, audit quality, company size, and return on assets to tax avoidance actions. The companies used in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) with a research period of 2016-2018. The number of research samples used were 162 data. The method of sampling used purposive sampling and this research used multiple regression analysis to test the hypothesis. This research shows that financial distress, tax loss carried forward, institutional ownership, managerial ownership, audit committee, audit quality, firm size, and return on asset have no influence on tax avoidance. This research shows that financial distress, tax loss carried forward, institutional ownership, managerial ownership, audit committee, audit quality, firm size, and return on asset have no influence on tax avoidance. Suggestions for further research to extend the study period of more than 3 years. In addition, it is hoped that further researchers can replace or add other independent variables such as sales growth. Keywords: Financial Distress, Tax Loss Carried Forward, Corporate Governance, Tax Avoidancae

scholarly journals Ownership Structure and Earnings Management

2019 ◽  
Vol 4 (2) ◽  
pp. 38-42
Author(s):  
Nico Alexander
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Foreign Ownership ◽  
Jel Classification ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Management Ownership ◽  
Independent Variable

Objective – The purpose of this research is to analyze the effect of ownership structure toward earnings management. Methodology/Technique – The population of this research consist of manufacturing companies listed on the Indonesian Stock Exchange (IDX) from 2014 to 2016. This research uses 3 recent years and adds variables that have not been used in prior research. The sample of this research is chosen using a purposive sampling method. Findings – The hypothesis is tested by multiple regressions using an Eviews program to investigate the influence between each independent variable to earnings management. Novelty – The research results shows that institutional ownership, controlling ownership, and foreign ownership affect earnings management whilst managerial ownership has no effect on earnings management. Type of Paper: Empirical. Keywords: Earnings Management; Ownership Structure; Institutional Ownership; Controlling Ownership; Foreign Ownership. Reference to this paper should be made as follows: Alexander, N.; 2019. Ownership Structure and Earnings Management, Acc. Fin. Review 4 (2): 38 – 42 https://doi.org/10.35609/afr.2019.4.2(1) JEL Classification: G40, G41, G49.

The Effect of Board and Ownership Structure on the Possibility of Financial Distress

2021 ◽  
Vol 22 (3) ◽  
pp. 581-601
Author(s):  
Joanne Jovita Jodjana ◽  
Sherin Nathaniel ◽  
Rinaningsih Rinaningsih ◽  
Titin Pranoto
Keyword(s):  
Logistic Regression ◽  
Ownership Structure ◽  
Financial Distress ◽  
Institutional Ownership ◽  
The Other ◽  
Financial Industry ◽  
Paired Data ◽  
Sensitivity Testing ◽  
Concentrated Ownership ◽  
Board Ownership

Research aims: This study aims to examine the effect of corporate governance, specifically relating to the ownership structure and board structure, on the possibility of financial distress.Design/Methodology/Approach: The sample used in this study are companies listed on the Indonesia Stock Exchange (IDX) from 2015 to 2019, excluding the financial industry. Conditional logistic regression is used as the study uses paired data based on the total assets of the company.Research findings: The results of this study indicate that board ownership, independent commissioners, and the board of directors can increase the likelihood of financial distress. On the other hand, institutional ownership and concentrated ownership are proven to have no effect on the likelihood of financial distress. The results of sensitivity testing using logistic regression showed different results on the variable institutional ownership, which is that institutional ownership can increase the likelihood of financial distress. Meanwhile, the other variables showed the same outcome as the main regression used in this study.Theoretical contribution/Originality: This study contributes to the knowledge on the relationship of board ownership, institutional ownership, concentrated ownership, independent commissioners and board size and the possibility of financial distress. Also, this research found that the provision of incentives in the form of shares to the board may not be an effective way to overcome financial distress in Indonesian firms.

Impact of Good Corporate Governance on Financial Distress in the Consumer Goods Sector Company

2017 ◽  
Vol 2 (4) ◽  
pp. 46-55
Author(s):  
Sri Marti Pramudena
Keyword(s):  
Corporate Governance ◽  
Consumer Goods ◽  
Financial Distress ◽  
Stock Exchange ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Good Corporate Governance ◽  
A Company

Objective - Financial distress is referred to as a condition in which a company's operations result in insufficient funds to meet its obligations (insolvency). The success or failure of a company greatly depends on the corporate governance of the company. This study aims to identify the relationship between the existence of good corporate governance and the probability of financial distress. Methodology/Technique - This study used secondary data obtained from annual reports from 2009 to 2014. The data is gathered from consumer goods manufacturing companies, that are listed on the Indonesian Stock Exchange (BEI). The sample includes 10 companies. The method of analysis used is multiple linear regressions. Findings - The results of the study show that institutional ownership and managerial ownership adversely affect the possibility of financial distress. On the other hand, the proportion of commissioners and the number of board of directors have a positive effect on the probability of financial distress. Novelty - This study found that institutional ownership (IO) has an inverse effect on the financial distress of a company. Type of Paper - Empirical Keywords: Good Corporate Governance; Financial Distress; Corporate Performance. JEL Classification: G30, G34, G39.

Analysis Of Factors Affecting Auditor Switching In Manufacturing Companies Listed On The Indonesia Stock Exchange

2021 ◽  
Vol 12 (1) ◽  
pp. 08-15
Author(s):  
Lora Ferbina Bangun
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Audit Fees ◽  
Test Results ◽  
Manufacturing Companies ◽  
Factors Affecting ◽  
Auditor Switching ◽  
Management Changes

Auditor switching is the turn of KAP and auditor carried out by the company for a reason or there are certain factors of the company or of the auditor itself. This study aims to determine the effect of audit fees, financial distress auditor size, client size, and management change to the auditor switching on manufacturing companies listed in the Indonesia Stock Exchange 2011-2014 period. This study used secondary data obtained from financial statements published on the internet through the official website of Indonesia Stock Exchange www.idx.co.id.The research sample is manufacturing companies listed in the Indonesia Stock Exchange 2012-2014. Sampling using purposive sampling and obtained a sample of 96 observations of 32 companies sampled in this study. Hypothesis testing is done by using logistic regression. From the test results indicate that audit fees, financial distress, auditor sie, clients size, and management changes do not influence auditor switching.

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