Articles

Financial Performance Analysis and Financial Distress Prediction of Indonesia State-Owned Enterprises in The Construction Industry Listed on IDX Before and During Economic Crisis in the Covid-19 Pandemic Era (Period 2019 – 2021)

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The Covid-19 pandemic has brought an immense impact on Indonesia’s economy. Indonesia officially went into recession after the Central Statistics Agency (BPS) announced negative GDP growth for two consecutive quarters, namely in the second quarter (-5.32%) and the third quarter (-3.49%) of 2020. Indonesia’s contracted economy has caused depression in many Indonesian sectors. The results of a survey by BPS in 2020 noted that the construction sector was recorded as one of the sectors that experienced the most decline in revenue, which was 87.94%. This study aims to measure the financial performance and health condition of Indonesian construction SOEs listed on IDX namely ADHI, PTPP, WSKT, and WIKA based on the decree of the Ministry of SOEs no. KEP-100/MBU/2002 as well as the financial distress prediction (bankruptcy potential) by using the Altman Z-Score method for the period 2019 to 2021. The result of the financial health rank level of each company from 2019 to 2021: ADHI (BBB, CCC, and B), PTPP (BBB, B, and BB), WSKT (BB, CC, and B), and WIKA (A, B, and B) respectively. According to the Altman Z-score result, all companies experienced declining in the total Altman Z-score results from 2019 to 2021 and were interpreted as being in a state of financial distress, except for WSKT. This study will complete previous research with a different approach and focus that can give a more equipped view regarding the impact of Covid-19 on the construction industry in Indonesia.

Assessing the Performance of Islamic Banks Using the Sharia Conformity and Profitability (SCNP) Model and the Sharia Maqashid Index (SMI) in Islamic Commercial Banks in Indonesia for the 2012-2020 Period

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This study aims to explain the method of analyzing the Islamic banks performance using the Sharia Maqashid Index and Sharia Conformity and Profitability methods. The research method used to analyze is descriptive quantitative, while the sample that been conducted to the research are financial statements of 6 Islamic commercial banks in Indonesia. The research results show that, using the Sharia Maqashid Index, Islamic banks in the research sample show unsatisfactory performance, because of the three work indicators, only the mashlahah performance indicator is optimally fulfilled. Meanwhile, using the Sharia Conformity Index method, five out of six Islamic banks are in quadrant 3 (Upper Right Quadrant).

Impact of the Covid-19 Pandemic on Performance of Rural Banks in Central Java – Indonesia

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This study aims to analyze the impact of the COVID-19 pandemic on the performance of conventional rural banks in Central Java. The data used in this study is panel data from 175 companies for 4 years (2018 to 2021). The data is in the form of rural bank financial reports obtained by downloading from the Financial Services Authority (FSA) website. Data analysis was carried out descriptively and inferentially. Inferential analysis was used to test the proposed hypothesis, namely the paired sample t-test. The results of this study indicate that Covid-19 has a significant negative impact on rural bank performance, namely reducing Return On Assets (ROA) and Loan to Deposit Ratio (LDR) and increasing Non Performing Loans (NPL).

Earning Management of Corporate Social Responsibility Mediation and Corporate Governance on Financial Performance (An Empirical Study on Idx Mining Corporates 2016-2020)

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This study aims to examine and analyze corporate social responsibility and corporate governance on financial performance and, through earning management as a mediating variable. Financial performance is the dependent variable which is proxied by ROA and MVA. The independent variables in this study were corporate social responsibility as proxied by 91 GRI 4.0 indicators and corporate governance as proxied by independent commissioners and institutional ownership. Earning management as a mediating variable proxied by discretionary accruals. This study uses a sample of 35 mining companies listed on the Indonesia Stock Exchange from 2016 to 2020. The data used in this study is secondary data analyzed using a multiple linear regression analysis path models with the help of SPSS 25 software, and corporate governance has a positive and significant effect on financial performance. Meanwhile, earning management has a negative and significant effect on financial performance. Corporate social responsibility has a positive and significant effect on earning management, while corporate governance has a negative and significant effect on earning management. Earning management mediates full corporate social responsibility on financial performance, while the board of commissioners partially mediates on financial performance.

How Does ESG Score and Board Structure Affect Financial Performance? Evidence from ESG Sector Leaders IDX Kehati

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The rise of sustainable investing, an investing strategy considering ESG (environmental, social, governance) factor of the company has spread worldwide, including in Indonesia. Recent phenomena of minimum percentage of woman on board in state-owned enterprise policy by Indonesia Ministry of State-Owned Enterprise and the new two ESG themed index which consists of state-owned enterprise has intrigued to assess the relationship between board structure towards financial performance of the companies. One of the index is “ESG Sector Leaders IDX KEHATI“ which  comprises of stocks with an ESG performance assessment above their industrial average value. Using ROA and ROE as the dependent variable and ESG and board structure variables and firm size, asset to equity ratio, and firm age as control variables. It is found that ESG has negative non-significant relationship towards both ROA and ROE. Board independence and board gender diversity has positive significant effect towards both ROA and ROE.