DETERMINAN POTENSI KEBANGKRUTAN PERUSAHAAN PADA MASA PANDEMI COVID-19

Abstract

The impact of the COVID-19 pandemic has a real and broad impact on all industries in Indonesia, which has the potential to increase the level of corporate bankruptcy (financial distress). This study aims to examine the effect of financial ratios on financial distress conditions in various industrial sub-sectors on the Indonesia Stock Exchange during the pandemic and before the pandemic. The study begins with the creation of a financial distress prediction model using the Logistics Regression Model with the input of financial and macroeconomic ratio data during 2016 – 2020. The financial distress prediction model will be used to measure the level of financial distress during the Pandemic and Pre-Pandemic Periods. Empirical testing shows that the pandemic affects the ability of financial ratios to predict the bankruptcy. In the pre-pandemic only debt ratio and sales growth were significant in predicting bankruptcy, but during the pandemic cash flow was also could predict the bankruptcy. During the pandemic, sales growth became the most important because it was the aspect most affected by the restrictions on consumer social and economic activities.