The effect of the independent board of commissioners and motivation on financial distress

Financial distress is carried out before real bankruptcy occurs in an industry. Problems in the finances of an industry are often faced because there are irregularities in it, the company does not have the ability to pay its long-term obligations to the total assets it has, while the margin obtained is not in line with the amount of assets that have been issued. The purpose of this study was to analyze the factors that influence financial distress with independent commissioners and motivation as the independent variables. The population used is the transportation company on the IDX (Indonesian Stock Exchange) for the 2019-2020 period with the purposive sampling method. The analysis technique used multiple linear regression using SPSS 25. The results obtained: motivation has a positive and significant effect on the financial distress variable and the independent board of commissioners has no significant effect on the financial distress variable. This study provides input to enrich the theory of the relationship between the Board of Independent Commissioners and Motivation towards Financial Distress.