Effect of Corporate Social Responsibility and Good Corporate Governance on Financial Distress in Mature Stage Companies Listed on the Indonesia Stock Exchange

Abstract

This research investigated to determine the extent of the influence of Corporate Social Responsibility and Good Corporate Governance on Financial Distress at the stage of a mature company. Research Objects Companies listed on the Indonesia Stock Exchange. The population in this study were 787 companies which are companies listed on the Indonesia Stock Exchange from 2017 to 2021. Determination of the research sample using purposive sampling, which is a sampling technique using specific criteria. In this study, 45 companies meet the criteria. Data analysis used Multiple Regression Analysis. The results show that Corporate Social Responsibility cannot prevent companies from experiencing Financial Distress. Different results were obtained on the Good Corporate Governance variable, where the implementation of Good Corporate Governance was able to make the company avoid financial difficulties.