Pengaruh Mekanisme Good Corporate Governance Terhadap Kualitas Laba Dengan Financial Distress Sebagai Moderasi

Abstract

Purpose: This study aims to analyze the impact of Good Corporate Governance (GCG) mechanisms-comprising managerial ownership, institutional ownership, independent commissioners, and audit committees-on earnings quality, as measured by the absolute value of discretionary accruals. It also examines the role of financial distress as a moderating variable within manufacturing companies listed on the Indonesia Stock Exchange during the 2020-2024 period. Method: This study employs panel data regression and Moderated Regression Analysis (MRA) using Eviews 14, with a population comprising all manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2020-2024 period, and a sample of 66 companies (330 observations) selected through purposive sampling. Finding: The results indicate that managerial ownership influences earnings quality, whereas institutional ownership, independent commissioners, and audit committees do not show a significant effect. Furthermore, financial distress does not moderate the relationship between GCG mechanisms and earnings quality. Novelty: The novelty of this research lies in examining financial distress as a moderating variable in the relationship between GCG mechanisms and earnings quality (proxied by the absolute value of discretionary accruals) during a period spanning the COVID-19 pandemic through to economic recovery.