Does good corporate governance predict financial distress?

Purpose: The primary materials sector is critical as the main foundation for most industries; this sector provides raw materials and basic materials essential for producing various products. This study aims to determine non-financial factors, especially corporate governance factors, that can influence the occurrence of financial Distress in Raw Materials sub-sector companies listed on the Indonesia Stock Exchange (IDX) in 2019-2021. Methodology/approach: This research uses secondary data, with 90 samples from 30 companies. The sampling technique applied was purposive sampling, and data analysis was carried out through logistic regression using SPSS version 26. Findings: The study's results showed that good corporate governance (GCG) and corporate social responsibility (CSR) disclosure did not affect financial distress. At the same time, institutional ownership has a positive effect on it. Practical and Theoretical contribution/Originality: The novelty of this study is examines financial distress in the basic materials sector by analyzing the combined impact of good corporate governance (GCG), corporate social responsibility (CSR) disclosure, and institutional ownership. Research Limitation: Data collection techniques for this research variables, such as good corporate governance and CSR disclosure, are based on the researcher's subjectivity in index assessment. The next suggestion from researchers is that there needs to be a reviewer to reduce subjective assessments.