Financial distress is closely related to bankruptcy in a company financial
distress is a step in which the financial conditional of the company gets decreased
before bankcruptcy. This research aims to prove the existence of the effect of
characteristic of audit committee, direction board size, commissioner board size,
and ownership structure toward financial distress in manufacture companies listed
in BEI in 2012-2014.
The population in this research was all of the manufacture companies listed
in Indonesia Stock Exchange publishing their Financial Report in 2012-2014. This
research used 32 manufacture companies listed in Indonesia Stock Exchange
publishing their financial report in 2012-2014 which were selected as the sample
with 96 of observed data. This research used logistic regression as data analysis
instrument. The method of analyzingthe data consisted of descriptive statistic,
Lemeshow’s and Hosmer test, the feasibility test of regression model, the
feasibility test of all model , Nagelkerke’s R Square test, the estimation of
parameter and interpretation.
Based on the findings, it showed that the meeting frequency of audit
committee, audit committee proportion, commissioner board size, managerial
ownership, and institutional ownership did not affect negatively toward financial
distress. While the direction board size affected negatively toward financial
distress.