Volume 5, Issue 6, December 2019, Page: 174-179
Financial Distress of Pharmaceutical Companies in Indonesia
Bintang Mukhammad Burhanudin Akbar, School of Business, Faculty Management and Business, Bogor Agricultural University, Bogor, Indonesia
Noer Azam Achsani, School of Business, Faculty Management and Business, Bogor Agricultural University, Bogor, Indonesia
Tubagus Nur Ahmmad Maulana, School of Business, Faculty Management and Business, Bogor Agricultural University, Bogor, Indonesia
Received: Sep. 27, 2018;       Accepted: May 10, 2019;       Published: Dec. 17, 2019
DOI: 10.11648/j.ijfbr.20190506.16      View  175      Downloads  95
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.
Keywords
Financial Distress, Stock Return, Pharmacy
To cite this article
Bintang Mukhammad Burhanudin Akbar, Noer Azam Achsani, Tubagus Nur Ahmmad Maulana, Financial Distress of Pharmaceutical Companies in Indonesia, International Journal of Finance and Banking Research. Vol. 5, No. 6, 2019, pp. 174-179. doi: 10.11648/j.ijfbr.20190506.16
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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