Analysis Of Company Bankruptcy Potential During The Covid-19 Pandemic: A Study Of The Transportation And Health Sector In Indonesia In 2020-2021
DOI:
https://doi.org/10.59141/jist.v4i8.666Keywords:
Financial ratios, Macroeconomic, Potential bankruptcyAbstract
The Covid-19 pandemic that occurred has damaged the economy of Indonesia and even the world. This poses a threat to companies in various sectors. Thus, this study aims to examine the role of financial ratios (current ratio, debt to asset ratio, return on assets, total asset turnover, sales growth) and macroeconomic factors (lending rate) in predicting potential bankruptcy conditions in transportation and health companies in Indonesia during the Covid-19 pandemic. The study was conducted with the Altman Z-Score of developing countries measured by the panel data regression method. The data used in this study were secondary data obtained from the Thomson-Reuter data stream. The population of this study is companies listed on the Indonesia Stock Exchange (IDX) for the 2020-2021 period with a sample of 69 companies. Based on the results of the research, it was found that the factors of the current ratio, debt-to-asset ratio, and sales growth have a significant effect on the potential bankruptcy of the company. This research is limited by relevant data and time during the Covid-19 pandemic.
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Muhammad Bilal Selostannu Rizki, Imo Gandakusuma
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
