Company Financial Performance Before and During The Covid-19 Pandemic

Ferdy Putra(1*), Mayla Khoiriyah(2), Rezi Abdurrahman(3), Alif Ilham Akbar Fatriansyah(4)


(1) Universitas Riau
(2) Universitas Riau
(3) Universitas Riau
(4) STIE AL Madani Bandar Lampung
(*) Corresponding Author

Abstract


This research aims to examine how liquidity, leverage, activity, and growth influence company financial performance before and during the COVID-19 pandemic. This research used purposive sampling with a population of manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2017-2019 for the period before the COVID-19 pandemic and in 2020 during the COVID-19 pandemic obtained 279 observations. Data were analyzed using SPSS 26. The results showed that Liquidity significantly affected the company's financial performance before the COVID-19 pandemic. In contrast, it has a significant negative effect on ROA, an insignificant negative effect on ROE and an insignificant positive effect on Tobin's q during the COVID-19 pandemic. Leverage has significant adverse effects before and during the COVID-19 pandemic. Activity had a significant positive effect before the COVID-19 pandemic, while it had a non-significant positive effect during the COVID-19 pandemic. Growth had a significant positive effect before the COVID-19 pandemic, a non-significant positive effect on ROA and ROE, and an insignificant negative effect on Tobin's q during the COVID-19 pandemic. Companies should pay attention to the leverage ratio because leverage has a significant negative influence before and during COVID-19, which means leverage can significantly reduce financial performance. For this reason, the company must regulate the capital structure following the company's capabilities.


Keywords


Financial Performance; Pandemic; COVID-19

Full Text:

PDF

References


Al Farooque, O., Buachoom, W., & Sun, L. (2020). Board, audit committee, ownership and financial performance – emerging trends from Thailand. Pacific Accounting Review, 32(1), 54–81. https://doi.org/10.1108/PAR-10-2018-0079

Atayah, O. F., Dhiaf, M. M., Najaf, K., & Frederico, G. F. (2022). Impact of COVID-19 on financial performance of logistics firms: evidence from G-20 countries. Journal of Global Operations and Strategic Sourcing, 15(2), 172–196. https://doi.org/10.1108/JGOSS-03-2021-0028

Barth, J. R., Lin, C., Ma, Y., Seade, J., & Song, F. M. (2013). Do bank regulation, supervision and monitoring enhance or impede bank efficiency? Journal of Banking and Finance, 37(8), 2879–2892. https://doi.org/10.1016/j.jbankfin.2013.04.030

Beauvais, B., Kruse, C. S., Fulton, L., Shanmugam, R., Ramamonjiarivelo, Z., & Brooks, M. (2021). Association of electronic health record vendors with hospital financial and quality performance: Retrospective data analysis. Journal of Medical Internet Research, 23(4), 1–15. https://doi.org/10.2196/23961

Chatzinas, G., & Papadopoulos, S. (2018). Trade-off vs. pecking order theory: evidence from Greek firms in a period of debt crisis. International Journal of Banking, Accounting and Finance, 9(2), 170. https://doi.org/10.1504/IJBAAF.2018.092133

Devi, S., Warasniasih, N. M. S., & Masdiantini, P. R. (2020). The Impact of COVID-19 Pandemic on the Financial Performance of Firms on the Indonesia Stock Exchange. Journal of Economics, Business, & Accountancy Ventura, 23(2). https://doi.org/10.14414/jebav.v23i2.2313

Egbunike, C. F., & Okerekeoti, C. U. (2018). Macroeconomic factors, firm characteristics and financial performance. Asian Journal of Accounting Research, 3(2), 142–168. https://doi.org/10.1108/AJAR-09-2018-0029

Ermawati, D., Nurcahyono, N., Sari, D. N., & Fakhruddin, I. (2023). The Dynamic Impact of Intellectual Capital on Firm Value : Evidence from Indonesia. International Conference on Business, Accounting, Banking, and Economics, 1, 246–262. https://doi.org/10.2991/978-94-6463-154-8

Ermawati, D., Nurcahyono, N., Sari, D. N., & Fakhruddin, I. (2023). The Dynamic Impact of Intellectual Capital on Firm Value : Evidence from Indonesia. International Conference on Business, Accounting, Banking, and Economics, 1, 246–262. https://doi.org/10.2991/978-94-6463-154-8

Fariha, R., Hossain, M. M., & Ghosh, R. (2022). Board characteristics, audit committee attributes and firm performance: empirical evidence from emerging economy. Asian Journal of Accounting Research, 7(1), 84–96. https://doi.org/10.1108/AJAR-11-2020-0115

Febrianto1, H. G., Fitriana2, A. I., Rohmansyah3, B., Ekonomi, F., Universitas, B., & Tangerang, M. (2021). Analisis liquidity, firm size dan good corporate governance terhadap financial performance. FORUM EKONOMI, 23(4), 819–827. http://journal.feb.unmul.ac.id/index.php/FORUMEKONOMI

Firdaus, R. G. (2020). Pengaruh Risiko, Return, dan Perekonomian Indonesia Terhadap Keputusan Berinvestasi Saat Covid-19. Jurnal Pasar Modal Dan Bisnis, 2(2), 115–128. https://doi.org/10.37194/jpmb.v2i2.43

Fu, M., & Shen, H. (2020). COVID-19 and Corporate Performance in the Energy Industry. Energy RESEARCH LETTERS, 1(1). https://doi.org/10.46557/001c.12967

Handayani, R., & Zulyanti, N. R. (2018). Pengaruh earning per share (EPS), debt to equity ratio (DER), dan return on assets (ROA) terhadap return saham pada perusahaan manufaktur yang terdaftar di BEI. Jurnal Penelitian Ilmu Manajemen, 3(1).

Harymawan, I., Nasih, M., Ratri, M. C., & Nowland, J. (2019). CEO busyness and firm performance: evidence from Indonesia. Heliyon, 5(5). https://doi.org/10.1016/j.heliyon.2019.e01601

Ifada, L. M., Ghoniyah, N., & Nurcahyono, N. (2023). How Do Tax Avoidance and Profitability Influence a Firm’S Intrinsic Value? Jurnal Akuntansi Multiparadigma, 14(1), 115–125. https://doi.org/10.21776/ub.jamal.2023.14.1.08

Jansen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial. Agency Costs and Ownership Structure.

Khatib, S. F. A., & Nour, A. N. I. (2021). The Impact of Corporate Governance on Firm Performance During The COVID-19 Pandemic: Evidence from Malaysia. Journal of Asian Finance, Economics and Business, 8(2), 943–952. https://doi.org/10.13106/jafeb.2021.vol8.no2.0943

Mangesti Rahayu, S. (2019). Mediation effects financial performance toward influences of corporate growth and assets utilization. International Journal of Productivity and Performance Management, 68(5), 981–996. https://doi.org/10.1108/IJPPM-05-2018-0199

Martha, J., & Saryadi. (2020). Pengaruh Perputaran Kas, Perputaran Piutang, Dan Perputaran Persediaan Terhadap Profitabilitas (Studi Pada Perusahaan Sub Sektor Farmasi Yang Terdaftar Di Bursa Efek Indonesia Periode 2014 – 2019). Jurnal Administrasi Bisnis, IX(IV), 420–430.

NGUYEN, T. T. C., NGUYEN, V. T., & DO, D. T. (2021). Internal Factors Affecting Firm Performance: A Case Study in Vietnam. The Journal of Asian Finance, Economics and Business, 8 (5), 0303–0314.

Nurcahyono, N., Hanum, A. N., & Sukesti, F. (2021). COVID 19 Outbreak and Stock Market Return: Evidence from Indonesia. Jurnal Dinamika Akuntansi Dan Bisnis, 8(1), 47–58. https://doi.org/10.24815/jdab.v8i1.18934

Puni, A., & Anlesinya, A. (2020). Corporate governance mechanisms and firm performance in a developing country. International Journal of Law and Management, 62(2), 147–169. https://doi.org/10.1108/IJLMA-03-2019-0076

Putra, F., & Putra, A. A. (2021). Pengaruh Struktur Kepemilikan Saham, Struktur Modal dan Profitabilitas Terhadap Nilai Perusahaan. Jurnal Akuntansi Keuangan Dan Bisnis, Vol. 14 No. 1 (2021), 1–10.

Rababah, A., Al‐Haddad, L., Sial, M. S., Chunmei, Z., & Cherian, J. (2020). Analyzing The Effects Of COVID-19 Pandemic On The Financial Performance Of Chinese Listed Companies. Journal of Public Affairs. https://doi.org/10.1002/pa.2440

Setianingsih, A., & Kristanti, I. (2022). Pengaruh Manajemen Laba dan Tata Kelola Perusahaan Terhadap Audit Delay. Owner Riset& Jurnal Akuntansi, 6(2), 1621–1632. https://doi.org/10.33395/owner.v6i2.810

Shen, H., Fu, M., Pan, H., Yu, Z., & Chen, Y. (2020). The Impact of the COVID-19 Pandemic on Firm Performance. Emerging Markets Finance and Trade, 56(10), 2213–2230. https://doi.org/10.1080/1540496X.2020.1785863

Sukesti, F., Ghozali, I., Fuad, F., Almasyhari, A. K., & Nurcahyono, N. (2021). Factors Affecting the Stock Price: The Role of Firm Performance. Journal of Asian Finance, Economics and Business, 8(2), 165–173. https://doi.org/10.13106/jafeb.2021.vol8.no2.0165

Tang, S. (2022). Pengaruh Liquidity dan Leverage Terhadap Firm Performance Dengan Firm Size Sebagai Variabel Moderasi. E-Jurnal Akuntansi, 32(9), 2239. https://doi.org/10.24843/EJA.2022.v32.i09.p01

Vinjamury, R. S. (2020). Corporate Board Subcommittees and Firm Performance: Evidence From India. Research in Finance, 36, 187–200. https://doi.org/10.1108/S0196-382120200000036008

Vu, T. T. Van, Dang, T. Q. Van, & Nguyen, V. H. (2018). Effects Of Working Capital Management To The Profitability Of Enterprises Listed In Ho Chi Minh Stock Exchanges. The 5th IBSM International Conference on Business, Management and Accounting Hanoi University of Industry, Vietnam.

Wardana, W., Jubi, inrawan, A., & Silaen, M. F. (2019). Pengaruh Perputaran Kas, Perputaran Piutang Dan Perputaran Persediaan Terhadap Profitabilitas Pada Perusahaan Sub Sektor Otomotif Dan Komponen Yang Terdaftar Di Bursa Efek Indonesia. FINANCIAL, 5(1), 66–73.


Article Metrics

Abstract view : 238 times
PDF - 3 times

DOI: https://doi.org/10.26714/mki.13.2.2023.173-183

Refbacks

  • There are currently no refbacks.


 -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

MAKSIMUM: Media Akuntansi Universitas Muhammadiyah Semarang 
ISSN 2087-2836 (print) | ISSN 2580-9482 (online)
Organized by Department of Accounting, Faculty of Economic and Business, Universitas Muhammadiyah Semarang, Semarang, Indonesia
Published by Program Studi Akuntansi Universitas Muhammadiyah Semarang
W : https://jurnal.unimus.ac.id/index.php/MAX
E : [email protected], [email protected]

Maksimum: Media Akuntansi Universitas Muhammadiyah Semarang is licensed under a Creative Commons Attribution Attribution-NonCommercial-NoDerivatives 4.0 International License.