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Financial Distress of Pharmaceutical Companies in Indonesia

Received: 27 September 2018     Accepted: 10 May 2019     Published: 17 December 2019
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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.

Published in International Journal of Finance and Banking Research (Volume 5, Issue 6)
DOI 10.11648/j.ijfbr.20190506.16
Page(s) 174-179
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Financial Distress, Stock Return, Pharmacy

References
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Cite This Article
  • APA Style

    Bintang Mukhammad Burhanudin Akbar, Noer Azam Achsani, Tubagus Nur Ahmmad Maulana. (2019). Financial Distress of Pharmaceutical Companies in Indonesia. International Journal of Finance and Banking Research, 5(6), 174-179. https://doi.org/10.11648/j.ijfbr.20190506.16

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    ACS Style

    Bintang Mukhammad Burhanudin Akbar; Noer Azam Achsani; Tubagus Nur Ahmmad Maulana. Financial Distress of Pharmaceutical Companies in Indonesia. Int. J. Finance Bank. Res. 2019, 5(6), 174-179. doi: 10.11648/j.ijfbr.20190506.16

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    AMA Style

    Bintang Mukhammad Burhanudin Akbar, Noer Azam Achsani, Tubagus Nur Ahmmad Maulana. Financial Distress of Pharmaceutical Companies in Indonesia. Int J Finance Bank Res. 2019;5(6):174-179. doi: 10.11648/j.ijfbr.20190506.16

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  • @article{10.11648/j.ijfbr.20190506.16,
      author = {Bintang Mukhammad Burhanudin Akbar and Noer Azam Achsani and Tubagus Nur Ahmmad Maulana},
      title = {Financial Distress of Pharmaceutical Companies in Indonesia},
      journal = {International Journal of Finance and Banking Research},
      volume = {5},
      number = {6},
      pages = {174-179},
      doi = {10.11648/j.ijfbr.20190506.16},
      url = {https://doi.org/10.11648/j.ijfbr.20190506.16},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20190506.16},
      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.},
     year = {2019}
    }
    

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  • TY  - JOUR
    T1  - Financial Distress of Pharmaceutical Companies in Indonesia
    AU  - Bintang Mukhammad Burhanudin Akbar
    AU  - Noer Azam Achsani
    AU  - Tubagus Nur Ahmmad Maulana
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    DO  - 10.11648/j.ijfbr.20190506.16
    T2  - International Journal of Finance and Banking Research
    JF  - International Journal of Finance and Banking Research
    JO  - International Journal of Finance and Banking Research
    SP  - 174
    EP  - 179
    PB  - Science Publishing Group
    SN  - 2472-2278
    UR  - https://doi.org/10.11648/j.ijfbr.20190506.16
    AB  - 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.
    VL  - 5
    IS  - 6
    ER  - 

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Author Information
  • School of Business, Faculty Management and Business, Bogor Agricultural University, Bogor, Indonesia

  • School of Business, Faculty Management and Business, Bogor Agricultural University, Bogor, Indonesia

  • School of Business, Faculty Management and Business, Bogor Agricultural University, Bogor, Indonesia

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