Effect of audit committee characteristics on relationship between financial distress and income maximization actions

The study aimed at obtaining empirical evidence regarding the influence of audit committee characteristics on the relationship between financial distress and income maximitation actions. The population on the current study were companies listed on the Indonesia Stock Exchange from 2015 to 2018. The sampling technique used non-probability sampling with a purposive sampling method to get 20 companies as research samples. The data analysis technique used moderated regression analysis. The test results provide empirical evidence that high financial expertise can weaken the influence of financial distress on income maximitation actions. This study also finds empirical evidence that the frequency of meetings is not a moderating effect of financial distress on income maximitation. The third hypothesis testing shows that the independence of the audit committee is able to moderate the relationship between financial distress on income maximitation