SURVIVAL ANALYSIS OF DELISTED INDONESIAN COMPANIES

• Main Author: Ramdhani Parmonangan 29116219, Lincoln
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28608
• Institution: Institut Teknologi Bandung

In the range between 2013 – second quater 2018, there are 21 delisted companies from the Indonesia Stock Exchange (IDX). Generally, the delisting criteria of the company are listed as being caused by forced delisting. Of the 21 companies that are delisted, 15 companies are delisted because of forced delisting. Companies that are affected by the delisted result in the investor might face is a lost enormous cost, with a stock price falling. <br /> <br /> <br /> <br /> <br /> The main purpose of the research is to evaluate determinant factors which contribute to companies being delisted from the (IDX). The samples are taken from the delisted companies list in IDX for a period year 20013-2018. The matching companies are then selected based on the financial condition to make an equivalent comparison for each delisted companies sample. The total final samples consist of 45 companies, 15 delisted companies and 30 still listed. This study presents empirical results from a study of 8 financial ratios and corporate sectors as variables. This research analyzes the company’s financial status by using descriptive statistics, independent sample t-test, and a survival analysis model to find the effect of each determinant to the probability of delisting. <br /> <br /> <br /> <br /> <br /> The results show five factors significant determinant to company delisting in Indonesia. The increased price too book value (PBV) and the debt-asset ratio (DAR) will increase the probability of the company to be delisted. While the increased return on equity (ROE) and net profit margin (NPM) will decrease the probability of a company to be delisted. This discovery will be useful for investors to avoid invest in a company who has a big chance of delisting. <br />