The aim of this reseach was to analyze the factors that affect the prossibity
of financial distress in manufacturing companiies in indonesia. This study used
samples of manufacturing companies lised in indonesia stock Exchange during the
period 2012 – 2014, with a total sample of 37 companies that meet the criteria
determined sample through purposive sampling method. The results showed that
institutional ownership, managerial ownership, independent commissioners’ and
firm size negatively affects the likelihood of financial distress. The amount board
of directors and liquidity ratios and leverage posivite effect on the likelihood of
financial distress.