Kontigensi: Jurnal Ilmiah Manajemen Vol.
No.
December 2024, pp.
ISSN 2088-4877
ANALYSIS OF DIFFERENCES IN FINANCIAL DISTRESS LEVELS BETWEEN
THE PROPERTY & REAL ESTATE SUB-SECTOR INDUSTRY AND THE
BUILDING CONSTRUCTION SUB-SECTOR INDUSTRY
Lestari, 2Atty Erdiana Faculty of Economics and Business.
Wijaya Kusuma University.
Surabaya Correspondent: lestarife@uwks.
DOI: https://doi.
org/10.
56457/jimk.
Received: August 29, 2024 Accepted: December 03, 2024 Published: December 13, 2024 Abstract This study investigates how the building construction industry in Indonesia Stock Exchange differs from the property and real estate industry in terms of financial bankruptcy The population of this study is the property and real estate sub-sector and the building construction sub-sector in Indonesia Stock Exchange.
The general objective of this study is to identify financial distress in the property & real estate and building construction industries and the level of financial distress of the property & real estate sub-sector and building construction sub-sector as a picture of the level of bankruptcy of the industrial While the specific objective is that companies can anticipate early and immediately make improvements in asset management and company financing.
The results of this study can also be used as a reference for investors to restructure their investment portfolios with more accurate portfolio return estimation calculations.
This study uses a purposive sampling method, with the consideration or criteria that the companies studied are companies that publish financial reports in 2022 and 2023 at least Q3.
To measure the level of financial distress of the two industrial sub-sectors, the Springate (S-Scor.
analysis model is used with the Independent Sample T Test analysis technique.
The results of this study indicate that there is no significant difference in financial distress in the property & real estate and building construction industries that go public on the Indonesia Stock Exchange.
Keywords: Financial Distress.
Property and Real Estate Sector.
Building Construction Industry INTRODUCTION The impact of globalization on the world's economic aspects is that competition is getting tighter in the business world.
This results in companies having to be able to manage their resources better because competition is not only domestic but also international (Masroor et al.
, 2.
Financial resources are one of the resources that must be managed optimally, especially considering the existing phenomenon that the number of companies and the increasing turnover of money shows that many new companies are emerging and some old companies are being eliminated.
The financial strength of a company is determined by its ability to make a The financial strength of a company is directly correlated with its ability to achieve profit and competitive advantage.
Basically, financial statement analysis is an analysis used to determine the profitability .
and risk .
experienced by the company (Purnama et , 2.
Financial distress/financial health of a company can be described from the healthiest point to the most unhealthy Kontigensi: Jurnal Ilmiah Manajemen Management Science Doctoral Program.
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Kontigensi: Jurnal Ilmiah Manajemen Vol.
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December 2024, pp.
ISSN 2088-4877
Financial distress generally comes from insignificant short-term liquidity problems to bankruptcy.
To achieve competitive strength, good financial performance is one of the most important components (Alabdullah et , 2.
A company's business that has poor financial performance will be removed from the industry and if financial performance continues to decline, the company will go bankrupt.
Bankruptcy occurs when a company experiences difficulties or is no longer able to fulfill its obligations because the company does not have the funds needed to run or continue its business.
In other words, bankruptcy is defined as financial or financial difficulties where the company is unable to pay off its To predict financial bankruptcy, companies must look at the company's Financial performance is an analysis conducted by the company in an effort to see how far the company has implemented using financial implementation rules properly and correctly (Apriani et al.
, 2.
Bankruptcy prediction serves to provide guidelines to interested parties about the company's financial performance whether it will go bankrupt in the future.
The earlier the signs of bankruptcy are known, the better because management can make Financial distressis a condition where a company is unable to generate sufficient income or revenue, so that the company is unable to meet or pay financial Financial distress is a condition where an individual or company is unable to generate sufficient income/profit or profit.
This condition is generally caused by the company's illiquid assets, fixed costs that are too high, company profits that are sensitive or affected by the decline in economic LITERATURE REVIEW Financial statements Financial statements are documents that describe the financial position and performance of a company during a certain period of time (Budiman, 2.
Meanwhile, according to the Financial Accounting Standards (PSAK) No.
1 of 2022 Paragraph 9, financial statements are a structured presentation of the financial position and financial performance of an Based on the above understanding, it can be concluded that financial reports are information obtained from recording transactions that can be used to see the development of a company or business and can be used to make decisions.
In general, the purpose of financial reports is to provide information about the company's financial condition, both in a certain period and at certain times.
Meanwhile, according to the Indonesian Institute of Accountants (IAI) in 2015, the purpose of financial reports is:
Providing information regarding the financial position, performance and changes in the financial position of a company that is useful for a large number of users in making economic .
To meet the needs of most users who generally describe the financial effects of past events.
management's accountability for the resources entrusted to it to manage.
According to PSAK No.
0: .
there are five main types of components of financial statements, namely: Income Statement.
Financial Position Statement.
Statement of Changes in Equity.
Cash Flow Statement and Notes to the Financial Statements.
Financial statements are used as a basis for measuring business results and the development of company performance from one period to the next and to determine how far the company has achieved its goals (Hidayat et al.
, 2.
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Kontigensi: Jurnal Ilmiah Manajemen Vol.
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Financial Distress Financial distressis a stage of decline in the company's financial condition that occurs before the company goes bankrupt.
The financial difficulties experienced by the company are liquidity difficulties so that if the company enters a period of financial distress, the company is unable to meet its obligations.
If there is no handling, the company will soon go Bankruptcy is a condition where a company has experienced difficulties in liquidation or is unable to meet its current obligations or short-term obligations, that bankruptcy is a financial difficulty experienced by a company.
This liquidation difficulty is characterized by the company's financial failure and economic failure.
Economic failure is the company's failure to finance operational activities as a result of declining company While financial distress is an insolvency that distinguishes between the basis of cash flow and the basis of shares (Hanafi, 2.
Financial distress or even bankruptcy is known by looking at the financial ratio analysis as a benchmark for the company's financial performance (Assaji et al.
, 2.
Financial Distress Method There are several Financial distress methods to analyze the potential for company bankruptcy.
These models include: First, the Grover method by Jeffrey S.
Grover, which is the development of the Financial distress prediction model from the Altman Z-Score concept which Altman built since 1968.
2001 Grover formulated a Financial distress/bankruptcy prediction model for limited financial ratios for use and changed the weighted coefficient for each ratio with a cutoff value of 0.
01 and -0.
Thus, if a company has a "G" value greater than or equal to 0.
01, the company is predicted not to have the potential to experience bankruptcy/Financial distress, while companies that have a "G" value smaller than or equal to -0.
02, the company is predicted to be in a state of bankruptcy (Irfani, 2.
Second, the Zmijewski method.
According to Kencana .
this model is the financial performance ratio of the profitability ratio (X.
, leverage ratio (X.
, and liquidity ratio (X.
of the company as the most important variables for predicting financial distress.
This theory is the same as the theory of liquidity, profitability, and wealth.
The cutoff value applied to the Zmijewski model is 0.
So if a company whose X value is greater than or equal to 0, then the company is predicted to go bankrupt in the future (Effendi et al.
, 2.
The Springate method has a cutoff value of 0.
862, which means that if a company has an "S" value less than or equal to 0.
862, the company is predicted to have the potential for Financial Distress and thus has the potential to go bankrupt.
Meanwhile, if the company has an "S" value greater than or equal to 0.
862, the company has a healthy financial condition and does not have the potential to Financial Distress bankruptcy (Francis Hutabarat et al.
RESEARCH METHODOLOGY
Population and Sample Pugu .
stated that population is a generalization area consisting of objects/subjects characteristics and qualities and is determined to be studied and then conclusions are drawn.
The population in this study is the building construction industry sub-sector and the property & real estate industry sub-sector on the Indonesia Stock Exchange.
The sampling technique used is purposive sampling with the criteria that the companies studied publish financial reports in 2022 and 2023 at least Q3.
The samples used are divided into 2 sub-sector groups, namely the building Kontigensi: Jurnal Ilmiah Manajemen Management Science Doctoral Program.
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Kontigensi: Jurnal Ilmiah Manajemen Vol.
No.
December 2024, pp.
ISSN 2088-4877
construction industry sub-sector and the companies for the building construction property & real estate industry sub-sector.
industry sub-sector and the property & real The number of samples used in this estate industry sub-sector.
The following study is 18 companies for the building are the samples studied.
construction company group and 22 Table 1: Research Sample No.
ACST
ADHI
Company Acset Indonusa (Cons.
Adhi Karya (Const.
No.
ROOF
BBSS
BEBS
Sadaya Concrete Blessing (Cons.
RISE
CSIS
Cahayasakti Invest Success (Cons.
Nusa Construction Engineering DGIK (Kons.
IDPR Indonesia Great Foundation (Cons.
Jaya Konst Manggala Pratama
JKON
(Cons.
NRCA Nusa Raya Cipta (Cons.
PBSA Paramita Builds Facilities (Cons.
PTDU Ubersakti Services (Cons.
PTPP PP (Perser.
(Cons.
SKRN Superkrane Mitra Utama (Kons.
SSIA Surya Semeste Internusa (Cons.
TAMA True Mainstream (Cons.
TOPS Totalindo Eka Persada (Cons.
TOTAL Total Banun Perdas (Cons.
Wika Building Construction WEGE (Cons.
WIKA Wijaya Karya (Const.
HOMI Grand House Mulia (Propert.
TARA Sitara Property (Propert.
BKSL
Company Trimitra Prawara Goldland (Propert.
Bumi Benowo Sukses S (Propert.
Jaya Sukses Makmur Sentosa (Propert.
Sentul City (Propert.
IPAC
Era Graharealty (Propert.
CHEST
Diamond Citra Propertindo (Propert.
DMAS
Puradelta Lestari (Propert.
FMII
GPRA
BIPP
LPKR
PLIN
POLL
PWON
REAL
WHEEL
Fortune Mate Indonesia (Propert.
Prime Gauraprima (Propert.
Buwanatala Indah Permai (Propert.
Lippo Karawaci (Propert.
Plaza Indonesia Realty (Propert.
Pollux Properties Indonesia (Propert.
Pakuwon Jati (Propert.
Repower Asia Indonesia (Propert.
Pikko Land Development (Propert.
ONE
City One Property (Propert.
NZIA
MKPI
LAND
Nusantara Almazia (Propert.
Kentjana Poltan (Propert.
Trimitra Properindo (Propert.
Source: Indonesia Stock Exchange (IDX) Operational Definition The company's financial distress prediction model used in this study is the Springate (S-Scor.
Springate (SScor.
analysis is used to predict the survival of a company by combining several financial ratios by giving different weights to the financial ratios.
Springate formulated his methodas follows:
S = 1.
03X1 3.
07X2 0.
66X3 0.
Information :
=Overall Index X1 = CapitalWork divided by Total Assets X2 = EBITdivided by Total Assets X3 = EBTdivided by Current Liabilities X4 =Sales divided by Total Assets Source: Springate.
Gordon LV 1978 The classification of healthy and bankrupt companies according to this model is:
Score S>0.
862: is a healthy company that has no potential for financial Score S<0.
862: is an unhealthy company that has the potential to experience financial difficulties.
Data Types and Sources This study uses secondary data sourced from reports published by the Indonesia Stock Exchange.
According to Sugiyono .
secondary data is a source that does not directly provide data to data collectors.
The data needed in this study are the Balance Sheet and Kontigensi: Jurnal Ilmiah Manajemen Management Science Doctoral Program.
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Kontigensi: Jurnal Ilmiah Manajemen Vol.
No.
December 2024, pp.
ISSN 2088-4877
Profit/Loss Reports for 2022 and 2023
DISCUSSION