The Impact of the Board, Political Connections on Financial Distress in Indonesia: Effects of Corporate Governance

This paper analyzes the impact of political connection, interlocking directorates, and female directors on financial distress, and corporate governance as a moderating variable. The results showed that all variables had a significant effect on financial distress partially. Political connection, interlocking commissioner positions, and audit committees have a significant and positive effect. While the interlocking CEO, female director, audit committee and board size variables have a significant negative effect. After entering the moderating variable, the results indicate that the political connection and interlocking variables moderated by the audit committee had a positive impact to the financial distress. While the political connection and interlocking CEO variables have negative values after being moderated by board size.