The Effect Of Leverage On Financial Distress With Executive With Foreign Experience And CEO Gender As Moderators
Study On State-Owned Companies In The Non-Financial Sector Listed On The Indonesia Stock Exchange For The 2018-2023 Period
Keywords:
Keywords: financial distress, debt ratio, executive with foreign experience, CEO gender, state-owned enterprises, pls-semAbstract
This study aims to determine the effect of leverage on financial distress moderated by executive with foreign experience and CEO gender. This study was conducted in the period 2018-2023 at non-financial state-owned companies listed on the Indonesia Stock Exchange. This study uses a purposive sampling data collection method with a total sample of 17 state-owned companies with 5 sectors that have met the specified criteria. The analysis technique used in this study is Partial Least Square-Structural Equation Modeling (PLS-SEM) using Warp-PLS software version 8.0 as a tool. Grover's proxy is used as a financial distress formula. The results of this study are that leverage has a positive effect on financial distress. Then the results of the interaction of executive with foreign experience as a moderator of leverage on financial distress are strengthening the effect of leverage on financial distress. The results of the interaction of chief executive officer gender as a moderator of leverage on financial distress are not moderating the effect of leverage on financial distress. The control variables firm size and board size have no effect on financial distress.
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