Research Paper
Year: 2023 | Month: March | Volume: 10 | Issue: 3 | Pages: 416-429
DOI: https://doi.org/10.52403/ijrr.20230349
The Effect of Audit Committee Characteristics and Length of Listing on Financial Distress with Intellectual Capital as a Moderation Variable in Property Companies
Erik Herianto Tampubolon1, Erlina2, Isfenti Sadalia3
1,2,3Department of Accounting, Faculty of Economics and Business Universitas Sumatera Utara, Indonesia
Corresponding Author: Erik Herianto Tampubolon
ABSTRACT
This study aims to determine the effect of audit committee characteristics on financial difficulties. The characteristics of the audit committee used in this study are the size of the audit committee, the frequency of audit committee meetings, the number of financial experts on the audit committee, and the length of listing. This study uses a moderating variable, namely intellectual capital.
The population in this study is 65 property and real estate companies listed on the Indonesia Stock Exchange in 2016-2020. Based on the purposive sampling method, the samples obtained were from 38 companies. Financial distress criteria in this study were measured using the Modified Altman Z-Score. Data analysis used logistic regression with the help of E-Views software.
The results of this study indicate that the size of the audit committee, the frequency of audit committee meetings, the number of financial experts on the audit committee, and the length of listing simultaneously significantly affect financial distress. The results of the partial test show that the frequency of audit committee meetings and the length of listing have a positive and significant effect on financial distress. The number of audit committees and the number of financial experts in the audit committee have no significant impact on financial distress. Intellectual Capital cannot moderate the relationship between the size of the audit committee, the frequency of audit committee meetings, the number of financial experts on the audit committee, and the length of listing on financial distress.
Keywords: financial distress, audit committee, altman z-score
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