Title:
THE EFFECT OF GOOD CORPORATE GOVERNANCE ON THE PREDICTION OF BANKRUPTCY IN RETAIL TRADE SUB-SECTOR IN INDONESIA

Authors:
Eli Safrida, Ilham Hidayah Napitupulu, and Selfi Afriani Gultom, Indonesia

Abstract:

The pandemic causes many entities to be unable to survive in their operations, causing these entities to go bankrupt. management is required to have good governance to suppress the occurrence of bankruptcy. This long-term objective is to analyze the prediction of bankruptcy and its effects, as well as the causes of bankruptcy of the entity which resulted in the closing of the entity and the dismissal of the workforce. The specific objective that is desired is to get a cue on entities experiencing financial difficulties through the calculation of bankruptcy predictions, as well as testing the effect of corporate governance on bankruptcy prediction. the population of this study amounted to 27 companies. Samples were selected using the purposive sampling method amounted to 20 companies. The data analysis method used ordinal regression with the help of SPSS. The findings in this study have the effect of the board of directors on the prediction of bankruptcy. The board of commissioners affects the prediction of bankruptcy. Independent commissioners influence the prediction of bankruptcy. Managerial ownership affects the prediction of bankruptcy and the audit committee affects the prediction of bankruptcy.