Good Corporate Governance sebagai Pemoderasi Pengaruh Financial Distress pada Opini Audit Going Concern

Abstract

This research uses manufacturing companies listed on the Indonesia Stock Exchange as research’s objects. The number of samples are 210 with using the purposive sampling method. Data collection is done using documentation. The data analysis technique used is Moderated Regression Analysis. Based on the results of the analysis, it was found that the application of good corporate governance to the company is able to weaken the influence of financial distress on the going concern audit opinion. The implications of the results of the study support the signal theory seen in the results of the financial distress which tends to signal the auditor to give a going-concern audit opinion. The results of the study also support agency theory where the tendency for information asymmetry between agents and principals, especially for companies in experience financial distress.
Keywords: Financial distress, good corporate governance, going-concern audit opinion.