FINANCIAL DISTRESS AND FINANCIAL PERFORMANCE ANALYSIS OF HIGHWAY COMPANIES BEFORE AND DURING THE COVID-19 PANDEMIC: EVIDENCE FROM INDONESIA STOCK EXCHANGE

• Main Author: Prasetyo, Ari
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/62657
• Institution: Institut Teknologi Bandung

Starting March 2020, Indonesia had the COVID-19 pandemic. There was a limitation for specific activities and people moving from one city to another, even downtown, especially for the big cities in Indonesia. Furthermore, this situation had decreased highway utilization due to complying with the government regulation, including work from home and large-scale social restrictions to reduce the spreading of the coronavirus. Hence, there is a possibility of revenue declining for highway operator companies. Based on Indonesia Stock Exchange, there are three listed highway companies such as PT Citra Marga Nusaphala Persada Tbk (CMNP), PT Nusantara Infrastructure Tbk (META), and PT Jasa Marga (Persero) Tbk (JSMR). This research assesses the financial distress by Zmijewski model with two criteria: bankrupt and non-bankrupt zone and the financial performance by SOE (state-owned enterprise) rating with three criteria: healthy, less healthy, and unhealthy condition. The research period is Q1 2019 – Q1 2020 as before the COVID-19 pandemic period and Q2 2020 – Q2 2021 as during the COVID-19 pandemic period. The study concludes that all highway companies were in a non-bankrupt zone by the Zmijewski model before and during the COVID-19 pandemic. In addition, based on SOE rating on average for the period before the COVID-19 pandemic CMNP, META, and JSMR achieved rating consecutively BBB (less healthy), BBB (less healthy), and BB (less healthy). Meanwhile, on average, for the period during the COVID-19 pandemic, CMNP, META, and JSMR achieved rating consecutively BB (less healthy), BB (less healthy), and B (less healthy). As a result, this research recommends that three highway companies generate a new revenue stream, such as developing a solar power plant at the surrounding toll road area.