Authors - Ain Nasthashia Nasrul, Roy Budiharjo Abstract - This study looks at how corporate governance practices affect financial distress in firms in the energy industry registered as companies under the Indonesia Stock Exchange (IDX) listing throughout the years spanning 2020 until 2024. The study applies institutional shareholding, audit committee capacity, diversity of gender among board directors, and company age as independent variables, while the Altman Z″ Score framework is utilized to evaluate financial dis-tress. This research utilised a quantitative methodology with a causal descriptive framework, employing secondary data sourced from annual reports and financial statements. The sample comprised 28 firms chosen by purposive selection, yielding 140 company-year observations. Results obtained from the model comparison stage revealed the suitability of the Common Effects Model as the selected specification in the panel regression estimation. Research outcomes reveal that corporate governance implementation together with company age significantly affects financial hardship. Meanwhile, institutional ownership, audit committee proportion, and gender composition within the board of directors do not show a statistically meaningful influence on financial distress. On the other hand, financial hardship is positively and significantly impacted by firm age, suggesting that, under some circumstances, older businesses are more likely to face financial trouble. This analytical model is capable of accounting for approximately 24.76% of the changes occurring in financial distress conditions. These results imply that the efficacy and calibre of governance processes are more crucial in reducing financial hardship than the mere existence of a governance organisation.
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