THE EFFECT OF CORPORATE GOVERNANCE MECHANISMS ON FINANCIAL DISTRESS.

The purpose of this study is to analyze the effect of corporate governance mechanisms on the likelihood of financial distress In this study, the authors were interested in examining how institutional ownership, independent commissioners and audit committees affect financial distress. The population of all manufacturing companies listed on the Indonesia Stock Exchange from 2018 to 2021 amounted to 106 samples, according to the criteria needed in this study, only 19 companies were sampled for 2018 to 2021. The results showed that the Board of Directors had a significant positive influence on financial distress, the proportion of independent commissioners had an insignificant effect on financial distress, the size of the audit committee had an insignificant effect on financial distress, and institutional ownership had a significant negative effect on financial distress. [ABSTRACT FROM AUTHOR]