Abstract :
This study aims to examine the effect of financial performance and corporate
governance mechanisms on financial distress. The financial performance used in
this study is Liquidity, Leverage, Activity and Profitability. While the corporate
governance mechanism uses the Board of Directorsand the Audit Committee. The
subjects used in this study are Manufacturing Companies Listed on the Indonesia
Stock Exchange and Malaysia Stock Exchange Period 2017 ? 2018. The sampling
technique uses purposive sampling. The number of manufacturing companies
sampled was 61 companies from a total of 260 on the IDX and 62 companies from
a total of 236 companies on the KLSE. The method of analysis multiple linear
regression using the SPSS 16 program.
The results of this study indicate that liquidity, activity, and probability
negatively affect financial distress both in Indonesia and in Malaysia. While the
other variables, namely Leverage, the Board of Directors and the Audit
Committee have no effect on financial distress both in Indonesia and Malaysia.
Also, there are differences in the level of financial distress in Indonesia and
Malaysia and there are differences in the effect of Liquidity, Leverage, Activity,
Profitability, the Board of Directors and the Audit Committee on financial distress
in Indonesia and Malaysia.