Good Corporate Governance and Prediction of Financial Distress to Stock Prices: Atman Z Score Approach

International Journal of Economics and Management Studies
© 2019 by SSRG - IJEMS Journal
Volume 6 Issue 11
Year of Publication : 2019
Authors : Rieke Pernamasari, Sri Purwaningsih, Juita Tanjung, Dewi Puji Rahayu
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How to Cite?

Rieke Pernamasari, Sri Purwaningsih, Juita Tanjung, Dewi Puji Rahayu, "Good Corporate Governance and Prediction of Financial Distress to Stock Prices: Atman Z Score Approach," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 11, pp. 56-62, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I11P107

Abstract:

The long-term goal to be achieved in this research is to analyze stock prices by using prediction of financial difficulties and good corporate governance in agricultural sector companies in Indonesia. This study uses the Altman Z-Score model as a prediction of bankruptcy and Good Corporate Governance reforms that are proxied through the board of commissioners, the number of independent commissioners, the number of business commissioners, and the number of audit accountants. The stock price used in this study is the stock price one week after the publication date of the 2013-2017 financial statements. The results of the study indicate that good corporate governance and prediction of financial distress have a significant positive effect on stock prices on agricultural sector companies involved in the Exchange Indonesian effect. The results of the research prove that corporate governance rules consider how to regulate accountability to shareholders who support the stock price, while bankruptcy predictions can provide results for investors in choosing companies that need through stock prices..

Keywords:

Financial Distress, Good Corporate Governance, Independent Commissioners, Audit Committee Competencies, Stock Prices.

References:

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