THE EFFECT OF LIQUIDITY AND LEVERAGE ON FINANCIAL DISTRESS WITH GOOD CORPORATE GOVERNANCE AS A MODERATING VARIABLE IN MINING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

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DOI:

https://doi.org/10.29040/ijebar.v10i2.20027

Abstract

This study's goal is to investigate how leverage and liquidity ratios affect financial crisis, with sound corporate governance acting as a moderating factor. This study uses an associative technique and a quantitative approach. Secondary data from the financial statements of businesses listed between 2020 - 2024 on the IDX makes up the data utilized. The sample was chosen via purposeful sampling. Forty yearly financial reports were examined in this study. The data analysis included both moderated regression analysis and multiple linear regression. The results show that financial hardship is positively and significantly impacted by liquidity and leverage. The link between liquidity, leverage, and financial distress is not moderated by GCG (Independent Commissioners). Leverage and liquidity have a 16.8% impact on financial distress.

Author Biography

Acep Komara, Universitas Swadaya Gunung Jati

Acep Komara is associate professor on accounting, University of Swadaya Gunung Jati, West Java, Indonesia. His field of research in CSR, Sustainability accounting and Good Corporate Governance.  

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Published

2026-06-30

How to Cite

Maula, I., & Komara, A. (2026). THE EFFECT OF LIQUIDITY AND LEVERAGE ON FINANCIAL DISTRESS WITH GOOD CORPORATE GOVERNANCE AS A MODERATING VARIABLE IN MINING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE. International Journal of Economics, Business and Accounting Research (IJEBAR), 10(2). https://doi.org/10.29040/ijebar.v10i2.20027

Issue

Vol. 10 No. 2 (2026): IJEBAR: Vol. 10, Issue 2, June 2026

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Articles

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