Effectiveness of Good Corporate Governance and Corporate Social Responsibility Implementation on Potential Financial Distress

ABSTRACT : The research objectives to be achieved are to provide understanding and knowledge to the public, especially investors and creditors, regarding the implementation of good corporate governance and corporate social responsibility on the potential for financial distress and can be used as a reference for further researchers and stakeholders (investors, creditors and government) in making relevant and reliable decisions. The methods used are Descriptive Statistical Analysis, Classical Assumption Testing, and Hypothesis Testing to obtain a comprehensive picture of the relationship between one variable and another, with data collection techniques using the purposive sampling method. The population in the study were manufacturing companies in the consumer goods sub-sector listed on the IDX which were carried out for 5 years of observation, namely 2018-2022. The results of the study showed that good corporate governance had a negative effect on financial distress and corporate social responsibility had no effect on financial distress Keywords : good corporate governance; corporate social responsibility; financial distress