The Influence of Good Corporate Governance and Business Risk on Financial Distress
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Abstract
This study aims to analyze the effect of institutional ownership, audit committee, and business risk on financial distress. The object of the study focuses on public companies listed on the Indonesia Stock Exchange (IDX) that are categorized as issuers with special notations during the 2015–2025 period. The increasing number of problematic issuers, indicated by trading suspensions, adverse audit opinions, and even negative equity, highlights the importance of an in-depth analysis of the factors influencing financial distress. The results show that institutional ownership and the audit committee do not have a significant effect on financial distress, while business risk has a positive effect on increasing financial distress.
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