Board Diversity, Koneksi Politik dan Financial Distress
Abstract
This study aims to determine the effect of board diversity (gender diversity, educational background, proportion of independent boards) and political connections on financial distress. Altman Z-Score is used to measure financial distress. The study was conducted on manufacturing companies listed on the Indonesia Stock Exchange in 2017-2019. The data analysis technique used in this study is panel data regression using data processing software Eviews 12. The results show that gender diversity and political connections have a negative effect on financial distress. While educational background has a positive effect on financial distress. The test results also show that the proportion of independent boards has no effect on financial distress.
Keywords: Financial Distress; Boards Diversity; Political Connection; Z-Score.
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References
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Azizah, F., & Amin, M. Al. (2020). Pengaruh Koneksi Politik Terhadap Kinerja Perusahaan. Journal OfAccounting and Governance, 4(1), 1–17. https://doi.org/10.36766/ijag.v4i1.38
Bahri, S., & Widyawati, N. (2015). Jurnal Ilmu dan Riset Manajemen Volume 4, Nomor 5, Mei 2015 1. Jurnal Ilmu Dan Riset Manajemen, 4(4), 1–20.
Ben, D. A., Moch, D. A., & Topowijono. (2015). Analisis Metode Springate (S-Score) Sebagai Alat Untuk Memprediksi Kebangkrutan Persahaan. Jurnal Administrasi Bisnis S1 Universitas Brawijaya, 21(1), 85770.
Campbell, K., & Vera, A. M. (2008). Gender diversity in the boardroom and firm financial performance. Journal of Business Ethics, 83(3), 435–451. https://doi.org/10.1007/s10551-007-9630-y
Carter, D. A., D’Souza, F. P., Simkins, B. J., & Simpson, W. G. (2007). The Diversity of Corporate Board Committees and Firm Financial Performance. In SSRN Electronic Journal. https://doi.org/10.2139/ssrn.972763
Carter, D. A., Simkins, B. J., & Simpson, W. G. (2003). Corporate Governance, Board Diversity, and Firm Value. Physical Review D, 97(11). https://doi.org/10.1103/PhysRevD.97.115021
Cull, R., Li, W., Sun, B., & Xu, L. C. (2015). Government connections and financial constraints: Evidence from a large representative sample of Chinese firms. Journal of Corporate Finance, 32, 271–294. https://doi.org/10.1016/j.jcorpfin.2014.10.012
Darmadi, S. (2011). Board diversity and firm performance: The indonesian evidence. Corporate Ownership and Control, 8(1 F), 524–539. https://doi.org/10.22495/cocv8i2c4p4
Dewi, A. S., Sari, D., & Abaharis, H. (2018). Pengaruh Karakteristik Dewan Komisarirs Terhadap Kinerja Perusahaan Manufaktur Di Bursa Efek Indonesia. Jurnal Benefita, 3(3), 445–454. https://doi.org/DOI : 10.22216/jbe.v3i3.3530 Kopertis
Dharmayuni, L., & Suryati, L. (2014). Pengaruh Koneksi Politik, Struktur Kepemilikan Dan Laverage Terhadap Kinerja Perusahaan. Angewandte Chemie International Edition, 6(11), 951–952., 1(3), 35–54.
Elya Dasuki, R. (2021). Manajemen Strategi : Kajian Teori Resource Based View. Coopetition : Jurnal Ilmiah Manajemen, 12(3), 447–454. https://doi.org/10.32670/coopetition.v12i3.710
Faccio, M. (2006). Politically connected firms. American Economic Review, 96(1), 369–386. https://doi.org/10.1257/000282806776157704
Fathonah, A. N., S-i, A., Ekonomi, F., & Widyatama, U. (2019). Pengaruh Gender Diversity Dan Age Diversity Terhadap Kinerja Keuangan. Jurnal Riset Akuntansi Dan Keuangan, 6(3), 373–380. https://doi.org/10.17509/jrak.v6i3.13941
Fukuoka, Y. (2013). Indonesia’s “democratic transition” revisited: A clientelist model of political transition. Democratization, 20(6), 991–1013. https://doi.org/10.1080/13510347.2012.669894
Goldman, E., Rocholl, J., & So, J. (2009). Do politically connected boards affect firm value. Review of Financial Studies, 22(6), 2331–2360. https://doi.org/10.1093/rfs/hhn088
Gujarati, D. N., & Porter, D. C. (2009). The McGraw-Hill Series Economics (fifth). Douglas Reiner.
Habib, A., Muhammadi, A. H., & Jiang, H. (2017). Political Connections and Related Party Transactions: Evidence from Indonesia. International Journal of Accounting, 52(1), 45–63. https://doi.org/10.1016/j.intacc.2017.01.004
Hanafi, J., & Breliastiti, R. (2016). Peran Mekanisme Good Corporate Governance dalam Mencegah Perusahaan Mengalami Financial Distress. Jurnal Online Insan Akuntan, 1(1), 195–220.
Hanani, F., & Aryani, Y. A. (2011). Pengaruh Gender Dewan Komisaris, Gender Dewan Direksi, Dan Kepemilikan Manajerial Terhadap Kinerja Perusahaan. Wahana Jurnal Ekonomi, Manajemen, Dan Akuntansi, 14(1), 160.
Hermalin, B. E., & Weisbach, M. S. (2001). Boards of Directors as an Endogenously Determined Institution: A review of the Economic Literature. National Bureau of Economic Research, 3, 41.
Irukawa Elisa. (2020). Contoh Hard Skill Dan Soft Skill, Ini Pengertian dan Perbedaanya. In Penerbit Deepublish. https://penerbitbukudeepublish.com/contoh-hard-skill-dan-soft-skill/
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Corporate Governance: Values, Ethics and Leadership, 3(4), 77–132. https://doi.org/10.2139/ssrn.94043
Komala, F., & Triyani, Y. (2019). Analisis Rasio Keuangan Terhadap Financial Distress Dengan Struktur Kepemilikan Sebagai Variabel Moderasi. Jurnal Akuntansi, 8(2), 176–205. https://doi.org/10.46806/ja.v8i2.619
Kristanti, F. T. (2015). The Test Of Gender Diversity And Financial Structure To The Cost Of Financial Distress : Evidence From Indonesian Family Business. Global Illuminators Conference Proceeding, 2(July), 554–564. https://www.researchgate.net/profile/Farida_Kristanti/publication/279750411_The_Test_Of_Gender_Diversity_And_Financial_Structure_To_The_Cost_Of_Financial_Distress_Evidence_From_Indonesian_Family_Business/links/5599599708ae793d13804f82.pdf
Kusumastuti, S., Supatmi, & Sastra, P. (2007). Pengaruh Board Diversity Terhadap Nilai Perusahaan Dalam Perspektif Corporate Governance. Jurnal Akuntansi Dan Keuangan, 9(2), 88–98. https://doi.org/10.9744/jak.9.2.pp.88-98
Masyitoh, S., Azhad, M. N., & Program, J. R. (2019). PENERAPAN KONSEP RESOURCES-BASED VIEW Uni(RBV) DALAM UPAYA MEMPERTAHANKAN KEUNGGULAN BERSAING PERUSAHAAN (Studi kasus pada Artshop Akifani Mutiara Mataram). Universitas Muhammadiyah Jember.
Ningrum, A., & Hatane, S. E. (2017). Pengaruh Corporate Governance terhadap Financial Distress. Jurnal Manajerial Dan Kewirausahaan, 5(1), 618–628.
Nugrahanti, Y. W., Sutrisno, T., Rahman, A. F., & Mardiati, E. (2020). Do firm characteristics, political connection and corporate governance mechanism affect financial distress? (Evidence from Indonesia). International Journal of Trade and Global Markets, 13(2), 220–250. https://doi.org/10.1504/IJTGM.2020.106753
Platt, H. D., & Platt, M. B. (2002). Predicting corporate financial distress: Reflections on choice-based sample bias. Journal of Economics and Finance, 26(2), 184–199. https://doi.org/10.1007/bf02755985
Pranoto, B. A., & Widagdo, A. K. (2016). Pengaruh Koneksi Politik dan Corporate Governance Terhadap Tax Agressiveness. Syariah Paper Accounting FEB UMS, 1(3), 472–486.
Roika, R., Salim, U., & Sumiati, S. (2019). Pengaruh Keragaman Dewan Direksi Terhadap Kinerja Keuangan Perusahaan. Iqtishoduna, 15(2), 115–128. https://doi.org/10.18860/iq.v15i2.7033
Shen, C. H., & Lin, C. Y. (2016). Political connections, financial constraints, and corporate investment. Review of Quantitative Finance and Accounting, 47(2), 343–368. https://doi.org/10.1007/s11156-015-0503-7
Solihah, R. (2016). Pola Relasi Bisnis Dan Politik Di Indonesia Masa Reformasi: Kasus Rent Seeking. Jurnal Wacana Politik, 1(1), 41–52. https://doi.org/10.24198/jwp.v1i1.10546
Vania, H., & Supatmi. (2014). The Effect Of Board Diversity Towards The Company Value Of Financial Institutions In Indonesia. International Journal of Business & Management Invention, 3(4), 32–41.
Zhou, G. (2019). Financial distress prevention in China: Does gender of board of directors matter? Journal of Applied Finance & Banking, 9(6), 1792–6599. https://search.proquest.com/docview/2288652677?accountid=14338
Altman, E. I., Iwanicz-Drozdowska, M., Laitinen, E. K., & Suvas, A. (2014). Distressed Firm and Bankruptcy Prediction in an International Context: A Review and Empirical Analysis of Altman’s Z-Score Model. SSRN Electronic Journal, 2. https://doi.org/10.2139/ssrn.2536340
Azizah, F., & Amin, M. Al. (2020). Pengaruh Koneksi Politik Terhadap Kinerja Perusahaan. Journal OfAccounting and Governance, 4(1), 1–17. https://doi.org/10.36766/ijag.v4i1.38
Bahri, S., & Widyawati, N. (2015). Jurnal Ilmu dan Riset Manajemen Volume 4, Nomor 5, Mei 2015 1. Jurnal Ilmu Dan Riset Manajemen, 4(4), 1–20.
Ben, D. A., Moch, D. A., & Topowijono. (2015). Analisis Metode Springate (S-Score) Sebagai Alat Untuk Memprediksi Kebangkrutan Persahaan. Jurnal Administrasi Bisnis S1 Universitas Brawijaya, 21(1), 85770.
Campbell, K., & Vera, A. M. (2008). Gender diversity in the boardroom and firm financial performance. Journal of Business Ethics, 83(3), 435–451. https://doi.org/10.1007/s10551-007-9630-y
Carter, D. A., D’Souza, F. P., Simkins, B. J., & Simpson, W. G. (2007). The Diversity of Corporate Board Committees and Firm Financial Performance. In SSRN Electronic Journal. https://doi.org/10.2139/ssrn.972763
Carter, D. A., Simkins, B. J., & Simpson, W. G. (2003). Corporate Governance, Board Diversity, and Firm Value. Physical Review D, 97(11). https://doi.org/10.1103/PhysRevD.97.115021
Cull, R., Li, W., Sun, B., & Xu, L. C. (2015). Government connections and financial constraints: Evidence from a large representative sample of Chinese firms. Journal of Corporate Finance, 32, 271–294. https://doi.org/10.1016/j.jcorpfin.2014.10.012
Darmadi, S. (2011). Board diversity and firm performance: The indonesian evidence. Corporate Ownership and Control, 8(1 F), 524–539. https://doi.org/10.22495/cocv8i2c4p4
Dewi, A. S., Sari, D., & Abaharis, H. (2018). Pengaruh Karakteristik Dewan Komisarirs Terhadap Kinerja Perusahaan Manufaktur Di Bursa Efek Indonesia. Jurnal Benefita, 3(3), 445–454. https://doi.org/DOI : 10.22216/jbe.v3i3.3530 Kopertis
Dharmayuni, L., & Suryati, L. (2014). Pengaruh Koneksi Politik, Struktur Kepemilikan Dan Laverage Terhadap Kinerja Perusahaan. Angewandte Chemie International Edition, 6(11), 951–952., 1(3), 35–54.
Elya Dasuki, R. (2021). Manajemen Strategi : Kajian Teori Resource Based View. Coopetition : Jurnal Ilmiah Manajemen, 12(3), 447–454. https://doi.org/10.32670/coopetition.v12i3.710
Faccio, M. (2006). Politically connected firms. American Economic Review, 96(1), 369–386. https://doi.org/10.1257/000282806776157704
Fathonah, A. N., S-i, A., Ekonomi, F., & Widyatama, U. (2019). Pengaruh Gender Diversity Dan Age Diversity Terhadap Kinerja Keuangan. Jurnal Riset Akuntansi Dan Keuangan, 6(3), 373–380. https://doi.org/10.17509/jrak.v6i3.13941
Fukuoka, Y. (2013). Indonesia’s “democratic transition” revisited: A clientelist model of political transition. Democratization, 20(6), 991–1013. https://doi.org/10.1080/13510347.2012.669894
Goldman, E., Rocholl, J., & So, J. (2009). Do politically connected boards affect firm value. Review of Financial Studies, 22(6), 2331–2360. https://doi.org/10.1093/rfs/hhn088
Gujarati, D. N., & Porter, D. C. (2009). The McGraw-Hill Series Economics (fifth). Douglas Reiner.
Habib, A., Muhammadi, A. H., & Jiang, H. (2017). Political Connections and Related Party Transactions: Evidence from Indonesia. International Journal of Accounting, 52(1), 45–63. https://doi.org/10.1016/j.intacc.2017.01.004
Hanafi, J., & Breliastiti, R. (2016). Peran Mekanisme Good Corporate Governance dalam Mencegah Perusahaan Mengalami Financial Distress. Jurnal Online Insan Akuntan, 1(1), 195–220.
Hanani, F., & Aryani, Y. A. (2011). Pengaruh Gender Dewan Komisaris, Gender Dewan Direksi, Dan Kepemilikan Manajerial Terhadap Kinerja Perusahaan. Wahana Jurnal Ekonomi, Manajemen, Dan Akuntansi, 14(1), 160.
Hermalin, B. E., & Weisbach, M. S. (2001). Boards of Directors as an Endogenously Determined Institution: A review of the Economic Literature. National Bureau of Economic Research, 3, 41.
Irukawa Elisa. (2020). Contoh Hard Skill Dan Soft Skill, Ini Pengertian dan Perbedaanya. In Penerbit Deepublish. https://penerbitbukudeepublish.com/contoh-hard-skill-dan-soft-skill/
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Corporate Governance: Values, Ethics and Leadership, 3(4), 77–132. https://doi.org/10.2139/ssrn.94043
Komala, F., & Triyani, Y. (2019). Analisis Rasio Keuangan Terhadap Financial Distress Dengan Struktur Kepemilikan Sebagai Variabel Moderasi. Jurnal Akuntansi, 8(2), 176–205. https://doi.org/10.46806/ja.v8i2.619
Kristanti, F. T. (2015). The Test Of Gender Diversity And Financial Structure To The Cost Of Financial Distress : Evidence From Indonesian Family Business. Global Illuminators Conference Proceeding, 2(July), 554–564. https://www.researchgate.net/profile/Farida_Kristanti/publication/279750411_The_Test_Of_Gender_Diversity_And_Financial_Structure_To_The_Cost_Of_Financial_Distress_Evidence_From_Indonesian_Family_Business/links/5599599708ae793d13804f82.pdf
Kusumastuti, S., Supatmi, & Sastra, P. (2007). Pengaruh Board Diversity Terhadap Nilai Perusahaan Dalam Perspektif Corporate Governance. Jurnal Akuntansi Dan Keuangan, 9(2), 88–98. https://doi.org/10.9744/jak.9.2.pp.88-98
Masyitoh, S., Azhad, M. N., & Program, J. R. (2019). PENERAPAN KONSEP RESOURCES-BASED VIEW Uni(RBV) DALAM UPAYA MEMPERTAHANKAN KEUNGGULAN BERSAING PERUSAHAAN (Studi kasus pada Artshop Akifani Mutiara Mataram). Universitas Muhammadiyah Jember.
Ningrum, A., & Hatane, S. E. (2017). Pengaruh Corporate Governance terhadap Financial Distress. Jurnal Manajerial Dan Kewirausahaan, 5(1), 618–628.
Nugrahanti, Y. W., Sutrisno, T., Rahman, A. F., & Mardiati, E. (2020). Do firm characteristics, political connection and corporate governance mechanism affect financial distress? (Evidence from Indonesia). International Journal of Trade and Global Markets, 13(2), 220–250. https://doi.org/10.1504/IJTGM.2020.106753
Platt, H. D., & Platt, M. B. (2002). Predicting corporate financial distress: Reflections on choice-based sample bias. Journal of Economics and Finance, 26(2), 184–199. https://doi.org/10.1007/bf02755985
Pranoto, B. A., & Widagdo, A. K. (2016). Pengaruh Koneksi Politik dan Corporate Governance Terhadap Tax Agressiveness. Syariah Paper Accounting FEB UMS, 1(3), 472–486.
Roika, R., Salim, U., & Sumiati, S. (2019). Pengaruh Keragaman Dewan Direksi Terhadap Kinerja Keuangan Perusahaan. Iqtishoduna, 15(2), 115–128. https://doi.org/10.18860/iq.v15i2.7033
Shen, C. H., & Lin, C. Y. (2016). Political connections, financial constraints, and corporate investment. Review of Quantitative Finance and Accounting, 47(2), 343–368. https://doi.org/10.1007/s11156-015-0503-7
Solihah, R. (2016). Pola Relasi Bisnis Dan Politik Di Indonesia Masa Reformasi: Kasus Rent Seeking. Jurnal Wacana Politik, 1(1), 41–52. https://doi.org/10.24198/jwp.v1i1.10546
Vania, H., & Supatmi. (2014). The Effect Of Board Diversity Towards The Company Value Of Financial Institutions In Indonesia. International Journal of Business & Management Invention, 3(4), 32–41.
Zhou, G. (2019). Financial distress prevention in China: Does gender of board of directors matter? Journal of Applied Finance & Banking, 9(6), 1792–6599. https://search.proquest.com/docview/2288652677?accountid=14338
Published
2022-08-26
How to Cite
KHARIS, Jassica Brigita; NUGRAHANTI, Yeterina Widi.
Board Diversity, Koneksi Politik dan Financial Distress.
E-Jurnal Akuntansi, [S.l.], v. 32, n. 8, p. 1987-2003, aug. 2022.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/87367>. Date accessed: 02 nov. 2024.
doi: https://doi.org/10.24843/EJA.2022.v32.i08.p03.
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