Organizing for Survival: Exploring the Role of Good Corporate Governance in Preventing Financial Distress

Abstract

This study explores how good corporate governance can help prevent financial distress in companies. In a rapidly changing business world, the implementation of good corporate governance is considered to improve company performance to achieve long-term success. The purpose of this study is to show that the implementation of GCG can reduce the risk of financial distress. This study uses a literature review methodology by analyzing articles on the role of GCG in preventing financial distress. The results of the study found that the implementation of good corporate governance can reduce the risk of financial distress in a company because companies with good governance tend to have better financial stability during difficult economic conditions