KESULITAN KEUANGAN: PENGARUH STRUKTUR KEPEMILIKAN
This study aimed to prove that the ownership structure has a significant and negative effect on the level of financial distress. Indicators of ownership structure are ownership concentration, managerial, institutional, and family ownership. The purposive sampling method was used in selecting 95 manufacturing companies listed on the Indonesia Stock Exchange during 2013-2017. Data was analyzed by panel regression method. The results showed that only foreign ownership has a negative and significant effect on the financial distress. The managerial and institutional ownership have significant and positive effect on financial distress, while concentration of ownership has no influence. These evidence shows that the large percentage of managerial, institutional and concentrated ownership could not decrease the level of financial difficulties. It occurred because the shareholders were less reliable in the supervision and control, hence the decisions taken by manager were not accurate.