The Effect of Financial Performance and Ownership Structure on Financial Distress with Good Corporate Governance as a Moderating Variable in Non-Regional Government Conventional Banks

Abstract : This study aims to analyze the effect of financial performance and ownership structure on financial distress, with Good Corporate Governance (GCG) as a moderating variable in non-regional government conventional banks in Indonesia during the 2019-2024 period. Employing a quantitative approach with panel data regression analysis on 17 banks listed on the Indonesia Stock Exchange, the results indicate that financial performance has a significant effect on financial distress, while ownership structure does not have a significant effect. Furthermore, GCG is proven to moderate the relationship between financial performance and financial distress; however, it does not moderate the effect of ownership structure on financial distress. These findings emphasize the importance of implementing GCG principles in strengthening financial performance and mitigating the risk of financial distress in the conventional banking sector.