Financial Performance of Retail Industry Before and After E-Commerce Booming in Indonesia: A Study of Altman Z-Score Model

Ika, Siti Rochmah; Nursiningsih, Fami; Sarnowo, Henry; Sahadi,

doi:10.2991/aebmr.k.210311.014

Cited by 5 publications

(6 citation statements)

References 5 publications

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“…The outcome of the study, however, contradicts the views of Ika et al [13] who observed that increasing online activities such as selling online have insignificant effects of enterprises financial performance. Their focus, however, was on performance in general but not resilience as was the case in the current study.…”

Section: Moderating Role Of Enterprise Size and Ownership Type On The...contrasting

confidence: 99%

Online sales adoption and financial resilience in Sub-Sahara Africa: the moderating role of ownership and enterprise size during Covid-19 crisis

et al. 2022

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It is an established fact that the Covid-19 pandemic had a persistent economic uncertainty effect than health uncertainty. In this study, the researchers examined the effects of expanding sales online on the financial resilience of enterprises in sub-Sahara Africa (SSA) during the economic downturn. The researchers measured financial resilience by the extent of sales and cash-flows decline during the pandemic. The researchers collected 4751 unweighted data from the World Bank’s Enterprise Survey and it Covid-19 follow-up survey. Findings from the bivariate probit model and the predictive margin probabilities showed that most enterprises in SSA adopted or expanded proportion of sales online during the pandemic. Increasing the proportion of online sales exerted a decreasing effect on sales and cash-flow declines and thus improved financial resilience at a threshold of 40% during the pandemic. Large enterprises were observed to be more resilient than small and medium enterprises, yet domestic and foreign enterprises had the same level of financial resilience during the pandemic. For enterprises in Africa to realise the 40% threshold of online sales, the researchers encourage enterprises to invest in advertisement for product legitimacy.

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Section: Moderating Role Of Enterprise Size and Ownership Type On The...contrasting

confidence: 99%

Online sales adoption and financial resilience in Sub-Sahara Africa: the moderating role of ownership and enterprise size during Covid-19 crisis

et al. 2022

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“…For measuring the economic sustainability, following previous studies (26,27) this study employs the Altman Z-score bankruptcy prediction model (28). Previous researches (29)(30)(31),supports the use of the Altman Z score to assess financial condition. The formula to calculate the Altman Z score is as follows:…”

Section: Variable Definition and Data Testingmentioning

confidence: 88%

“…Figure 1 depicts the production of prominent mining products in the country in 2020. Nickel leads Indonesia's mining industry with an output of 35.5 million metric tons, followed by gold and silver with 29.69 million metric tons, and bauxite with 26 million metric tons. COVID-19 officially reached Indonesia in early March 2020, at the time when President Joko Widodo announced the first confirmed infection case in the country.…”

Section: Introductionmentioning

confidence: 99%

Does COVID-19 Affect the Business Sustainability of Mining Industry? Some Indonesian Evidence

Rochmah Ika,

Puspita Sari,

Ana Setianingrum

et al. 2024

KSS

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This study aims to investigate whether COVID-19 affects business sustainability in terms of the economics of the mining industry in Indonesia. Specifically, this article examines whether the economic sustainability of mining companies improved or worsened after the COVID-19 attack on the country. The current research measures economic sustainability using the Altman Z financial distress model and profitability. Using 43 publicly listed companies in the mining industry as a sample, the analysis of the Wilcoxon signed rank test reveals that the Altman Z score increases significantly in the period after the COVID-19 contagion as compared to those before the contagion. Meanwhile, there is no difference in the profitability of the mining industry before and after the COVID-19 contagion. The results suggest that the mining industry remains strong despite the huge effect of the COVID-19 pandemic, which led to a decrease in the coal price due to the large scale social restrictions. The financial performance of the mining industry shows an improvement, as marked by an upward trend in the Altman Z score from 2018 to 2021. The profitability of the mining industry has been stable from 2018 to 2021. This study offers evidence of the mining industry’s financial condition in the Indonesia Stock Exchange (IDX) when COVID-19 attacked Indonesia, at a time when the gold price reached its maximum and the president banned the export of mining products’ raw materials. Keywords: economic sustainability, financial performance, Altman Z-score, financial distress, profitability, COVID-19

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“…This research also utilizes Altman Z-rating of financially distressed estimation model [18] to assess the healthiness of the financial condition of the sample company. Some studies have used the model to explain the impact of some economic events, such as the worldwide financial meltdown [21] and ecommerce booming [22], on the performance of a specific industry sector. Other studies have employed the model to assess financial healthiness of companies in an industry [23,24].…”

Section: Variable Measurement and Data Analysismentioning

confidence: 99%

Does the COVID-19 epidemic impact on economic sustainability of big agricultural firms in Indonesia?

Ika,

Nugroho,

Santoso

et al. 2023

IOP Conf. Ser.: Earth Environ. Sci.

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The current research seeks to determine whether the economic sustainability of large agricultural firms in Indonesia be affected by the COVID-19 epidemic. The agricultural sector’s economic sustainability assures the food supply chain, which ultimately maintains the nation’s food security. In the current research, big agricultural companies are represented by those listed on the Indonesia Stock Exchange (IDX) in two consecutive years, 2019 and 2020. Meanwhile, economic sustainability refers to companies’ business performance, which is assessed by some financial ratios, namely the Altman Z-model for forecasting financial difficulties, liquidity, profitability, and leverage. The Altman Z-model is utilized to identify whether the monetary soundness of the business is good, in a precautionary situation, or in bad shape. Surprisingly, our data analysis shows an increase in the sample company’s Z score, liquidity, and profitability from 2019 to 2020. The average Altman Z-score indicates that big agricultural companies are financially healthy. The outcomes of the paired samples t test indicate no disparity in the economic performance of Indonesia’s largest agricultural firms. This study provides evidence that large agricultural companies are resilient in fighting the COVID-19 pandemic.

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Financial Performance of Retail Industry Before and After E-Commerce Booming in Indonesia: A Study of Altman Z-Score Model

Cited by 5 publications

References 5 publications

Online sales adoption and financial resilience in Sub-Sahara Africa: the moderating role of ownership and enterprise size during Covid-19 crisis

Online sales adoption and financial resilience in Sub-Sahara Africa: the moderating role of ownership and enterprise size during Covid-19 crisis

Does COVID-19 Affect the Business Sustainability of Mining Industry? Some Indonesian Evidence

Does the COVID-19 epidemic impact on economic sustainability of big agricultural firms in Indonesia?

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