The influence of intellectual capital and woman on boards on financial distress in consumer cyclicals sector companies on the Indonesian Stock Exchange in 2021-2023
Keywords:
control variable, financial distress, intellectual capital, woman on board of commissioners, woman on board of directorsAbstract
Financial distress is a condition of declining financial performance accompanied by an inability to meet obligations. This research was conducted to determine the influence of intellectual capital, woman on board of commissioners, and woman on board of directors on financial distress in consumer cyclicals companies listed on the Indonesia Stock Exchange from 2021 to 2023. This research also includes control variables such a firm size and leverage which are used to minimise the potential impact of other variables that influence financial distress. The sampling technique used purposive sampling and only 112 consumer cyclicals companies met the criteria to be included in the sample. The data obtained was then analysed using logistic regression analysis with IBM SPSS 25 as the analysis tool. The result of this research show that intellectual capital has a negative influence on financial distress. Meanwhile, woman on board of commissioners and woman on board of directors have no effect on financial distress. This influence makes high intellectual capital, which is an implication of a company success in managing its resources, especially intangible resource which can reduce the potential for financial distress. To maintain a healthy condition and avoid financial difficulties, companies must consistently innovate in creating adaptation strategies and optimising resource to gain a competitive advantage over their competitors.
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