International Journal of Finance and Banking Research

| Peer-Reviewed |

Financial Distress of Pharmaceutical Companies in Indonesia

Received: Sep. 27, 2018    Accepted: May 10, 2019    Published: Dec. 17, 2019
Views:       Downloads:

Share This Article

Abstract

Many pharmaceutical companies run into financial problems, while the pharmaceutical sub-sector is a vital industry that manufactures and sells pharmaceutical products in Indonesia. Currently the pharmaceutical sub-sector faces government policies related to the application of e-catalogs, BPJS health policies and very high dependence on raw materials in producing drugs. The panel data regression method is used with two models of financial distress companies, altans and DSC in predicting financial problems with a sample of 7 companies that have been listed on the Indonesian stock exchange. In addition, this study was conducted to determine the condition of financial distress on stock returns. The results are known to show that there is a decrease in financial ratios in each company, this has implications for the decline in the financial distress model. At the same time it was known that there was a decline in returns of shares from each pharmaceutical company.

DOI 10.11648/j.ijfbr.20190506.16
Published in International Journal of Finance and Banking Research ( Volume 5, Issue 6, December 2019 )
Page(s) 174-179
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Financial Distress, Stock Return, Pharmacy

References
[1] Wirdus, Setiawan. 2001. Cara Sehat Investasi di Pasar Modal. Jakarta (ID): Media Komputindo.
[2] Sutriatmoko. 2015. Analisis Penerapan e-procurement obat dengan prosedur e-purchasing berdasarkan e-catalogue di dinas kesehatan kabupaten/kota di jawa tengah [tesis]. Yogyakarta (ID): Universitas Gadjah Mada.
[3] Direktorat Jendral Kefarmasian dan Alat Kesehatan. Laporan Kinerja 2016. Jakarta (ID): Kementrian Kesehatan.
[4] Otom, Robert Odero. 2014. Predicting Financial Distress Using Financial Ratios In Companies Listed In Nairobi Stock Exchange (2003-2011).
[5] Syadiati, Winwin. 2017. The Influence Of Profitability On Financial Distress: A Research On Agricultural Companies Listed In Indonesia Stock Exchange. International Journal Of Scientific & Technology Research. 6 (11).
[6] Ong’era, Joshua B. Muturi, Willy. Oluoch, Oluoch. Karanja, John Ngugi. 2017. Leverage as Financial Antecedent to Financial Distress among Listed Companies at Nairobi Securities Exchange. Research Journal of Finance and Accounting. 8 (6).
[7] Zohra, Kerroucha Fatima. Mohamed, Bensaid. Elhamoud, Turki. Garaibeh, Mohamed. Ilhem, Attaoui. Naimi, Halim. 2015. Using Fiancial Ratios to Predict Financial Distress of Jordanian Industrial Firms Empirical Study Using Logistic Regression. 4 (2).
[8] Christananda c, Khairunnisa, Nurbaiti a. 2017. Analysis of current ratio and net profit margin for predicting financial distress condition of the company (study of textile and garment company listed in indonesia stock exchange period 2010-2015). E-proceeding of management. 4 (1).
[9] Assaji JP, Machmuddah Z. 2017. Rasio keuangan dan prediksi financial distress. Jurnal Penelitian Ekonomi dan Bisnis, 2 (2).
[10] Murni M. 2017. Analisis faktor-faktor yang mempengaruhi tingkat financial distress pada perusahaan manufaktur yang terdaftar di bei tahun 2010-2014 Jurnal Akuntansi dan Bisnis. 4 (1).
[11] Bakhri S, Lisyaningsih E, Nurbaiti. 2018. Pengaruh Likuiditas Dan Profitabilitas Terhadap Financial Distress Pada Perusahaan Transportasi Yang Terdaftar Di Bursa Efek Indonesia Periode 2014-2016. Jurnal Riset Akuntansi dan Manjemen, 7 (1).
[12] Beaver WH, Correia M. 2011. Financial Statement Analysis and the Prediction of Financial Distress Foundation and Trends R in Accounting, 5 (2).
[13] Islami IN, Rio W. 2018. Financial Ratio Analysis to Predict Financial Distress on Property and Real Estate Company listed in Indonesia Stock Exchange. (Journal of Applied Accounting and Finance. 2(2).
[14] Campbell JY., Jens DH, Jan S. 2011. Predicting financial distress and the performance of distressed stocks. Journal of Investment Management 9 (2): 14-34.
[15] Suntratuk P. 2017. Predicting Financial Distress: Evidence from Thailand [Thesis] Martin De Tours School of Management of Assumption University.
[16] Masdupi E, Tasman A, Davista A. 2018. The Influence of Liquidity, Leverage and Profitability on Financial Distress of Listed Manufacturing Companies in Indonesia. Advances in Economics, Business and Management Research, volume 57 (1).
[17] Sumaryati A, Tristiarini. 2017. The Influence of Cost of Equity on Financial Distress and Firm Value. Advances in Economics, Business and Management Research. 46 (1) .
[18] Pranowo, Koes. Achsani, Noer Azam, Manurung, Adler H. Nuryantono, Nunung. Determinant of Corporate Financial Distress in an Emerging Market Economy: Empirical Evidence from the Indonesian Stock Exchange 2004-2008. International Research Journal of Finance and Economics. 52 (1).
Cite This Article
  • APA Style

    Bintang Mukhammad Burhanudin Akbar, Noer Azam Achsani, Tubagus Nur Ahmmad Maulana. (2019). Financial Distress of Pharmaceutical Companies in Indonesia. International Journal of Finance and Banking Research, 5(6), 174-179. https://doi.org/10.11648/j.ijfbr.20190506.16

    Copy | Download

    ACS Style

    Bintang Mukhammad Burhanudin Akbar; Noer Azam Achsani; Tubagus Nur Ahmmad Maulana. Financial Distress of Pharmaceutical Companies in Indonesia. Int. J. Finance Bank. Res. 2019, 5(6), 174-179. doi: 10.11648/j.ijfbr.20190506.16

    Copy | Download

    AMA Style

    Bintang Mukhammad Burhanudin Akbar, Noer Azam Achsani, Tubagus Nur Ahmmad Maulana. Financial Distress of Pharmaceutical Companies in Indonesia. Int J Finance Bank Res. 2019;5(6):174-179. doi: 10.11648/j.ijfbr.20190506.16

    Copy | Download

  • @article{10.11648/j.ijfbr.20190506.16,
      author = {Bintang Mukhammad Burhanudin Akbar and Noer Azam Achsani and Tubagus Nur Ahmmad Maulana},
      title = {Financial Distress of Pharmaceutical Companies in Indonesia},
      journal = {International Journal of Finance and Banking Research},
      volume = {5},
      number = {6},
      pages = {174-179},
      doi = {10.11648/j.ijfbr.20190506.16},
      url = {https://doi.org/10.11648/j.ijfbr.20190506.16},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijfbr.20190506.16},
      abstract = {Many pharmaceutical companies run into financial problems, while the pharmaceutical sub-sector is a vital industry that manufactures and sells pharmaceutical products in Indonesia. Currently the pharmaceutical sub-sector faces government policies related to the application of e-catalogs, BPJS health policies and very high dependence on raw materials in producing drugs. The panel data regression method is used with two models of financial distress companies, altans and DSC in predicting financial problems with a sample of 7 companies that have been listed on the Indonesian stock exchange. In addition, this study was conducted to determine the condition of financial distress on stock returns. The results are known to show that there is a decrease in financial ratios in each company, this has implications for the decline in the financial distress model. At the same time it was known that there was a decline in returns of shares from each pharmaceutical company.},
     year = {2019}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Financial Distress of Pharmaceutical Companies in Indonesia
    AU  - Bintang Mukhammad Burhanudin Akbar
    AU  - Noer Azam Achsani
    AU  - Tubagus Nur Ahmmad Maulana
    Y1  - 2019/12/17
    PY  - 2019
    N1  - https://doi.org/10.11648/j.ijfbr.20190506.16
    DO  - 10.11648/j.ijfbr.20190506.16
    T2  - International Journal of Finance and Banking Research
    JF  - International Journal of Finance and Banking Research
    JO  - International Journal of Finance and Banking Research
    SP  - 174
    EP  - 179
    PB  - Science Publishing Group
    SN  - 2472-2278
    UR  - https://doi.org/10.11648/j.ijfbr.20190506.16
    AB  - Many pharmaceutical companies run into financial problems, while the pharmaceutical sub-sector is a vital industry that manufactures and sells pharmaceutical products in Indonesia. Currently the pharmaceutical sub-sector faces government policies related to the application of e-catalogs, BPJS health policies and very high dependence on raw materials in producing drugs. The panel data regression method is used with two models of financial distress companies, altans and DSC in predicting financial problems with a sample of 7 companies that have been listed on the Indonesian stock exchange. In addition, this study was conducted to determine the condition of financial distress on stock returns. The results are known to show that there is a decrease in financial ratios in each company, this has implications for the decline in the financial distress model. At the same time it was known that there was a decline in returns of shares from each pharmaceutical company.
    VL  - 5
    IS  - 6
    ER  - 

    Copy | Download

Author Information
  • School of Business, Faculty Management and Business, Bogor Agricultural University, Bogor, Indonesia

  • School of Business, Faculty Management and Business, Bogor Agricultural University, Bogor, Indonesia

  • School of Business, Faculty Management and Business, Bogor Agricultural University, Bogor, Indonesia

  • Section